Semi-Annual Report
15th fiscal period
December 1, 2013 >>> May 31, 2014

1－1－

Profile
Nomura Real Estate Residential Fund, Inc. (referred to as “Nomura Residential Fund” or
the “Company” hereinafter) was listed on the Tokyo Stock Exchange on February 14, 2007as a real estate investment corporation formed to own and invest in Residential properties,
subject to the Act on Investment Trusts and Investment Corporations of Japan. The
Company’s basic investment policy is to assure stable rent revenues and steady portfolio
growth over the medium-to-long-term.
Nomura Real Estate Asset Management Co., Ltd. (referred to as “NREAM” hereinafter), a
wholly owned subsidiary of Nomura Real Estate Holdings, Inc. is in charge of asset
management on behalf of Residential Fund in accordance with the basic investment policy
as described above. Through coordination with Nomura Real Estate Holdings, Inc. andother group companies, NREAM aims to achieve these goals and more.

Contents
To Our Investors
Summary of Portfolio Properties
Profile of the Asset Management Company
Performance Report
Financial Section
Business Structure/Corporate Data
Website

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To Our Investors
On behalf of Nomura Real Estate Residential Fund, Inc. (the Company), I would like to express our gratitude for your trust andpatronage.
With the Company having closed the accounts for the 15th fiscal period that ended May 31, 2014, allow me to present an overview ofthe management status and financial results.
In the 15th fiscal period, continuing on from previous fiscal periods, we promoted the strategy for property replacement to enhance
the portfolio profitability and quality, transferring two properties amounting to 1,675 million yen (sum total of transfer prices) that were
forecast to show future decrease in property competitiveness and increase in maintenance costs due to aging and other reasons. As aresult of the above, the size of assets at the end of the 15th fiscal period (as of May 31, 2014) was 153 properties amounting to 160,247
million yen (sum total of acquisition prices).
In terms of the management of portfolio properties, although the 15th fiscal period was a period that included the fiscal year end when
there is frequent tenant turnover and although large tenants moved out of some properties, we launched appropriate leasing activities
according to property characteristics and thereby managed to maintain the portfolio occupancy rate at the end of the 15th fiscal period at
a high level of 95.8%. In addition, with unification of the names of properties under management underway, the two names “PRIMEURBAN” and “URBAN STAGE” that we have been using according to building age at the time of acquisition will be unified to“PRIME URBAN” in an attempt to further enhance property recognition in the rental housing market along with “PROUD FLAT.”
Concerning financing activities, we enhanced financial stability and addressed the risk of rising interest rates by lengthening loan
periods and shifting to fixed-interest loans upon refinancing 9.2 billion yen.
As a result of these management activities, we achieved operating revenues of 5,594 million yen, ordinary income of 1,956 million
yen and net income of 1,955 million yen for the fiscal period, declaring cash distribution per unit of 12,161 yen.
We will remain committed to stable management with a medium- to long-term perspective in and after the next fiscal period.
We ask our investors for your continued support and encouragement.

Masatomi Natsume
Executive Director
Nomura Real Estate Residential Fund, Inc.
Chief Investment Officer, NRF
Nomura Real Estate Asset Management Co., Ltd.

-21－3－-2-

Summary of Portfolio Properties
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Name of Property
PROUD FLAT Shirokane Takanawa
PROUD FLAT Yoyogi Uehara
PROUD FLAT Hatsudai
PROUD FLAT Shibuya Sakuragaoka
PROUD FLAT Gakugei Daigaku
PROUD FLAT M eguro Gyoninzaka
PROUD FLAT Sumida Riverside
PROUD FLAT Kagurazaka
PROUD FLAT Waseda
PROUD FLAT Shinjuku Kawadacho
PROUD FLAT Sangen Jaya
PROUD FLAT Kamata
PROUD FLAT Kamata II
PROUD FLAT Shinotsuka
PROUD FLAT Kiyosumi Shirakawa
PROUD FLAT M onzen Nakacho II
PROUD FLAT M onzen Nakacho I
PROUD FLAT Fujimidai
PROUD FLAT Asakusa Komagata
PROUD FLAT Yokohama
PROUD FLAT Kamioooka
PROUD FLAT Tsurumi II
PRIM E URBAN Azabu Juban
PRIM E URBAN Akasaka
PRIM E URBAN Tamachi
PRIM E URBAN Shibaura LOFT
PRIM E URBAN Hatagaya
PRIM E URBAN Yoyogi
PRIM E URBAN Bancho
PRIM E URBAN Chiyoda Fujimi
PRIM E URBAN Iidabashi
PRIM E URBAN Ebisu
PRIM E URBAN Naka M eguro
PRIM E URBAN Gakugei Daigaku
PRIM E URBAN Senzoku
PRIM E URBAN M eguro Riverside
PRIM E URBAN M eguro Ohashi Hills
PRIM E URBAN Kachidoki
PRIM E URBAN Shinkawa
PRIM E URBAN Nihonbashi Yokoyamacho
PRIM E URBAN Hongo Ikizaka
PRIM E URBAN Hakusan
PRIM E URBAN Yotsuya Gaien Higashi
PRIM E URBAN Ochiai
PRIM E URBAN Nishi Shinjuku I
PRIM E URBAN Nishi Shinjuku II
PRIM E URBAN Shinjuku Naitomachi
PRIM E URBAN Nishi Waseda
PRIM E URBAN Sangen JayaⅢ
PRIM E URBAN Chitose Karasuyama
PRIM E URBAN Karasuyama
PRIM E URBAN Sangen Jaya
PRIM E URBAN M inami Karasuyama
PRIM E URBAN Karasuyama Galleria
PRIM E URBAN Karasuyama Court
PRIM E URBAN Chitose Funabashi
PRIM E URBAN Yoga
PRIM E URBAN Shinagawa Nishi
PRIM E URBAN Oimachi
PRIM E URBAN Osaki
PRIM E URBAN Oimachi II
PRIM E URBAN Yukigaya
PRIM E URBAN Omori
PRIM E URBAN Denenchofu M inami
PRIM E URBAN Nakano Kamitakada
PRIM E URBAN Takaido
PRIM E URBAN Nishi Ogikubo
PRIM E URBAN Otsuka
PRIM E URBAN Komagome
PRIM E URBAN M onzen Nakacho
PRIM E URBAN Kameido
PRIM E URBAN Sumiyoshi
PRIM E URBAN M ukojima
PRIM E URBAN Kinshi Koen
PRIM E URBAN Kinshicho
PRIM E URBAN Hirai
PRIM E URBAN Kasai
PRIM E URBAN Kasai II
PRIM E URBAN Kasai East
PRIM E URBAN Ekoda
PRIM E URBAN Itabashi Kuyakushomae
PRIM E URBAN Asakusa
PRIM E URBAN M achiya South Court
PRIM E URBAN M usashi Koganei
PRIM E URBAN M usashino Hills
PRIM E URBAN Koganei Honcho
PRIM E URBAN Kumegawa
PRIM E URBAN M usashi Kosugi comodo
PRIM E URBAN Shinyurigaoka
PRIM E URBAN Tsurumi Teraya

Location
M inato-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
Chuo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Toshima-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Nerima-ku, Tokyo
Taito-ku, Tokyo
Yokohama-shi, Kanagawa
Yokohama-shi, Kanagawa
Yokohama-shi, Kanagawa
M inato-ku, Tokyo
M inato-ku, Tokyo
M inato-ku, Tokyo
M inato-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Bunkyo-ku, Tokyo
Bunkyo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Nakano-ku, Tokyo
Suginami-ku, Tokyo
Suginami-ku, Tokyo
Toshima-ku, Tokyo
Toshima-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Sumida-ku, Tokyo
Sumida-ku, Tokyo
Sumida-ku, Tokyo
Edogawa-ku, Tokyo
Edogawa-ku, Tokyo
Edogawa-ku, Tokyo
Edogawa-ku, Tokyo
Nerima-ku, Tokyo
Itabashi-ku, Tokyo
Taito-ku, Tokyo
Arakawa-ku, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Higashimurayama-shi, Tokyo
Kawasaki-shi, Kanagawa
Kawasaki-shi, Kanagawa
Yokohama-shi, Kanagawa

Acquisition Price(thousands of yen)
3,510,000
1,100,000
865,000
800,000
812,000
882,000
2,260,000
1,540,000
1,110,000
1,010,000
1,350,000
1,140,000
2,980,000
695,000
900,000
650,000
1,130,000
1,370,000
1,960,000
2,340,000
2,770,000
1,430,000
991,000
956,000
941,000
1,510,000
452,000
408,000
1,170,000
707,000
2,030,000
1,200,000
1,320,000
886,000
536,000
464,000
3,580,000
2,290,000
2,250,000
3,530,000
647,000
893,000
1,700,000
324,000
1,290,000
1,000,000
512,000
503,000
755,000
730,000
344,000
835,000
840,000
645,000
413,000
885,000
1,150,000
624,000
530,000
1,700,000
1,100,000
970,000
824,000
900,000
640,000
1,080,000
435,000
794,000
412,000
2,200,000
705,000
552,000
487,000
1,180,000
668,000
700,000
637,000
958,000
940,000
385,000
940,000
350,000
1,740,000
2,390,000
1,590,000
725,000
1,370,000
2,150,000
1,210,000
457,000

1－4－-3-Percentage
of Total (%)
2.2
0.7
0.5
0.5
0.5
0.6
1.4
1.0
0.7
0.6
0.8
0.7
1.9
0.4
0.6
0.4
0.7
0.9
1.2
1.5
1.7
0.9
0.6
0.6
0.6
0.9
0.3
0.3
0.7
0.4
1.3
0.7
0.8
0.6
0.3
0.3
2.2
1.4
1.4
2.2
0.4
0.6
1.1
0.2
0.8
0.6
0.3
0.3
0.5
0.5
0.2
0.5
0.5
0.4
0.3
0.6
0.7
0.4
0.3
1.1
0.7
0.6
0.5
0.6
0.4
0.7
0.3
0.5
0.3
1.4
0.4
0.3
0.3
0.7
0.4
0.4
0.4
0.6
0.6
0.2
0.6
0.2
1.1
1.5
1.0
0.5
0.9
1.3
0.8
0.3

Leasable Floor Area(sqm)
2,950.11
1,151.34
958.98638.70934.39855.23
3,055.21
1,793.43
1,450.91
1,102.20
1,277.82
1,541.64
4,051.72
752.091,209.56
830.55
1,191.08
2,222.05
2,685.39
3,118.12
4,872.17
2,219.74
1,222.13
1,062.05
1,107.36
1,905.39
650.60439.56
1,277.04
793.872,087.70
1,444.40
1,302.42
1,008.39
655.27453.772,955.74
4,524.00
3,600.61
5,926.17
662.581,069.82
1,759.11
517.53
1,459.86
1,162.55
578.18507.11
1,018.72
1,774.01
507.52874.15
1,049.73
835.05576.201,027.44
1,773.05
961.25722.702,106.16
1,794.85
1,536.59
1,190.70
1,100.17
818.75
1,746.20
543.09944.99991.94
3,207.92
1,117.34
813.52
1,108.91
1,886.50
991.62
1,095.91
905.81
1,437.84
1,884.62
872.491,742.64
876.704,141.56
5,999.80
2,961.06
1,604.72
2,610.05
3,692.44
1,708.19
952.06

Leasable Units(units)
106
44
31
30
41
40
110
70
60
41
48
67
169
35
55
35
55
94
79
113
200
81
40
25
48
68
38
19
52
32
90
29
49
32
22
24
99
145
46
124
27
42
51
32
60
46
14
28
47
27
28
33
41
33
23
38
54
46
45
99
93
94
54
44
33
107
24
46
22
118
52
40
55
77
49
53
45
68
78
35
68
22
77
98
80
43
91
56
64
50

Occupancy Rate
(M ay 2014)(%)
92.6
100.0
100.0
100.0
97.1
92.6
98.6
100.0
96.9
100.0
88.3
97.1
98.6
97.2
100.0
89.5
100.0
100.0
96.7
95.9
87.5
100.0
89.9
96.6
90.0
95.9
100.0
100.0
94.4
90.8
95.7
86.8
93.9
90.8
91.5
91.5
95.6
91.6
93.0
99.5
92.6
96.4
89.8
93.7
92.2
95.9
100.0
3.5
96.6
89.1
96.3
100.0
95.2
97.0
100.0
97.3
100.0
95.9
97.8
98.0
96.2
100.0
100.0
95.5
100.0
95.4
96.1
97.9
95.0
99.2
94.3
100.0
100.0
98.7
100.0
100.0
97.8
100.0
100.0
97.4
91.2
100.0
97.6
93.9
93.3
97.4
97.4
100.0
100.0
100.0

#
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118
119
120
121
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124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153

Name of Property
PRIM E URBAN Urayasu
PRIM E URBAN Gyotoku I
PRIM E URBAN Gyotoku II
PRIM E URBAN Gyotoku Ekimae
PRIM E URBAN Gyotoku EkimaeⅡ
PRIM E URBAN GyotokuⅢ
PRIM E URBAN Nishi Funabashi
PRIM E URBAN Kawaguchi
URBAN STAGE Ebisu
URBAN STAGE M eguro Aobadai
URBAN STAGE Gakugei Daigaku
URBAN STAGE Nihonbashi Hamacho
URBAN STAGE Naka Ochiai
URBAN STAGE Shinjuku Ochiai
URBAN STAGE M ejiro
URBAN STAGE Kagurazaka
URBAN STAGE Roka Koen
URBAN STAGE Kamiuma
URBAN STAGE Sangen Jaya II
URBAN STAGE Komazawa
URBAN STAGE Kamikitazawa
URBAN STAGE Nakano
URBAN STAGE Ikebukuro
URBAN STAGE Hino
URBAN STAGE Kawasaki
URBAN STAGE Urayasu
URBAN STAGE M inami Gyotoku II
URBAN STAGE M inami Gyotoku III
URBAN STAGE M inami Gyotoku IV
Greater Tokyo Area
PROUD FLAT Itsutsubashi
PROUD FLAT Kawaramachi
PROUD FLAT Shin Osaka
PRIM E URBAN Yamahana
PRIM E URBAN Kita Juyo Jo
PRIM E URBAN Odori Koen I
PRIM E URBAN Odori Koen II
PRIM E URBAN Kita Juichi Jo
PRIM E URBAN M iyanosawa
PRIM E URBAN Odori Higashi
PRIM E URBAN Chiji Koukan
PRIM E URBAN M aruyama
PRIM E URBAN Kita Nijuyo Jo
PRIM E URBAN Sapporo Idaimae
PRIM E URBAN Nagamachi Icchome
PRIM E URBAN Yaotome Chuo
PRIM E URBAN Aoi
PRIM E URBAN Kanayama
PRIM E URBAN Tsurumai
PRIM E URBAN Esaka I
PRIM E URBAN Esaka II
PRIM E URBAN Esaka III
URBAN STAGE Sapporo Riverfront
URBAN STAGE Kita 3 Jo DoriURBAN STAGE Tsutsumidori Amamiya
URBAN STAGE Kamimaezu
URBAN STAGE Izumi
URBAN STAGE Tamatsukuri
URBAN STAGE Sakaisuji Honmachi
Benefis Hakata Grand Suite
Benefis Yakuin M inami
Benefis Kashii Verbena
Benefis Hakata Higashi Grand Suite
Benefis Chihaya Grand Suite
Other Areas
Total

Location
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Funabashi-shi, Chiba
Kawaguchi-shi, Saitama
Shibuya-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
Chuo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Nakano-ku, Tokyo
Toshima-ku, Tokyo
Hino-shi, Tokyo
Kawasaki-shi, Kanagawa
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Sendai-shi, M iyagi
Sendai-shi, M iyagi
Osaka-shi, Osaka
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sendai-shi, M iyagi
Sendai-shi, M iyagi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Suita-shi, Osaka
Suita-shi, Osaka
Suita-shi, Osaka
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sendai-shi, M iyagi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Osaka-shi, Osaka
Osaka-shi, Osaka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka

Acquisition Price(thousands of yen)
840,000
635,000
741,000
476,000
561,000
948,000
772,000
2,170,000
1,030,000
1,190,000
916,000
1,470,000
655,000
635,000
1,260,000
2,640,000
362,000
900,000
539,000
396,000
738,000
472,000
3,310,000
319,000
1,150,000
277,000
285,000
263,000
256,000
129,840,000
682,000
724,000
1,430,000
377,000
336,000
530,000
322,000
600,000
576,200
424,000
337,900
283,200
503,700
731,600
1,110,000
428,000
724,000
632,000
1,189,096
672,000
790,000
1,535,000
3,500,000
1,450,000
969,000
1,250,000
2,800,000
906,000
1,780,000
830,000
351,000
396,000
693,000
545,000
30,407,696
160,247,696

1－5－
-4-

Percentage ofTotal (%)
0.5
0.4
0.5
0.3
0.4
0.6
0.5
1.4
0.6
0.7
0.6
0.9
0.4
0.4
0.8
1.6
0.2
0.6
0.3
0.2
0.5
0.3
2.1
0.2
0.7
0.2
0.2
0.2
0.2
81.0
0.4
0.5
0.9
0.2
0.2
0.3
0.2
0.4
0.4
0.3
0.2
0.2
0.3
0.5
0.7
0.3
0.5
0.4
0.7
0.4
0.5
1.0
2.2
0.9
0.6
0.8
1.7
0.6
1.1
0.5
0.2
0.2
0.4
0.3
19.0
100.0

Leasable Floor Area(sqm)
1,264.84
1,151.36
1,244.00
778.19927.33
1,766.47
1,237.80
2,477.11
1,184.85
1,464.14
1,109.87
2,026.44
1,237.98
1,053.39
1,755.52
2,853.82
567.201,739.86
810.98572.41
1,384.45
801.304,376.95
994.68
1,706.46
437.94611.61
542.69535.08185,115.32
1,861.56
1,967.54
2,990.68
1,518.58
1,155.60
1,850.20
1,148.72
1,851.39
2,114.53
1,494.36
1,007.30
911.07
1,773.90
2,439.90
3,411.24
1,380.21
1,571.04
1,391.02
2,502.11
1,189.12
1,392.00
2,151.67
15,552.59
5,094.29
4,251.91
3,541.43
7,543.10
2,373.10
3,909.90
2,176.23
897.84
1,222.34
1,854.13
1,740.70
89,231.30
274,346.62

Leasable Units(units)
60
52
58
37
46
77
60
98
35
40
41
52
18
28
65
100
34
37
17
26
29
51
131
54
80
27
37
33
32
6,691
60
64
112
33
36
53
36
60
54
36
42
27
36
58
60
43
46
58
104
48
57
79
311
114
65
101
250
80
82
67
34
39
65
48
2,458
9,149

Occupancy Rate
(M ay 2014)(%)
93.3
96.2
100.0
97.3
97.8
98.7
98.3
86.9
93.7
100.0
98.2
94.9
100.0
91.8
95.6
99.3
91.3
95.5
91.2
100.0
96.3
96.2
93.0
85.2
100.0
96.3
94.6
93.9
90.4
95.7
97.8
96.1
96.6
96.5
93.6
100.0
100.0
100.0
98.4
100.0
100.0
100.0
91.6
93.5
94.4
97.8
88.5
96.5
93.3
85.5
98.3
91.5
96.4
100.0
96.8
100.0
95.9
95.4
90.7
96.2
100.0
92.3
97.4
94.0
96.1
95.8

Profile of the Asset Management Company
As of October 1, 2011, Nomura Real Estate Asset Management Co., Ltd. (NREAM) was merged with Nomura Real Estate
Investment Management Co., Ltd. (NREIM) and Nomura Real Estate Capital Management Co., Ltd. (NRECM), with a change of its
Japanese trade name from Nomura Fudosan Toshin to Nomura Fudosan Toshi Komon. We believe that the Company can benefit
from various synergy effects from this merger including the ability to quickly respond to changes in the real estate and financial
markets, the enhancement of expertise and experience necessary for real estate investment, and the ability to provide asset
management services through one of the largest real estate asset management companies in Japan.

Company: Nomura Real Estate Asset Management Co., Ltd.
Capital: ¥300 million (as of May 31, 2014)
Shareholder : Nomura Real Estate Holdings, Inc. (100%)
Incorporation : January 24, 2003
・Organization of the asset management company

1－6－
-5-

Performance Report

Contents
Asset Management Report
Profile of the Company
Status of Investment Assets of the Company
Capital Expenditures
Expenses and Liabilities
Trading during the 15th fiscal period
Other Information

7
14
16
26
27
31
35

-6-

Asset Management Report
1. CHANGES IN KEY INDICATORS
15th Period
from Dec. 1, 2013
to May 31, 2014

14th Period
from Jun. 1, 2013
to Nov. 30, 2013

13th Period
from Dec. 1, 2012
to May 31, 2013

12th Period
from Jun. 1, 2012
to Nov. 30, 2012

11th Period
from Dec. 1, 2011
to May 31, 2012

Operating Revenues(¥mln)

5,594

5,406

5,257

5,174

5,250

of which Real Estate Rental Revenues(¥mln)

5,556

5,356

5,238

5,174

5,241

Operating Expenses(¥mln)

3,080

2,848

2,823

2,721

2,743

of which Real Estate Rental Expenses(¥mln)

2,453

2,250

2,252

2,131

2,188

Operating Profit(¥mln)

2,513

2,558

2,433

2,452

2,507

Ordinary Income(¥mln)

1,956

1,966

1,878

1,876

1,857

Net Income(¥mln)

1,955

1,965

1,876

1,875

1,856

Total Assets(¥mln)

167,940

168,019

156,576

156,703

156,780(Changes from Previous Period)(%)（-0.0）（＋7.3）（-0.1）（- 0.0）（＋11.9）Interest-Bearing Debts(¥mln)

89,75089,84083,002

83,092

83,182

Net Assets(¥mln)

75,22675,236

70,83870,83670,818(Changes from Previous Period)(%)（-0.0）（＋6.2）（＋0.0）（＋0.0）（＋11.9）Unitholders’ Capital(¥mln)

73,231

73,231

68,961

68,961

68,961

Number of Units Issued(Units)160,800

160,800

150,936

150,936

150,936

Net Assets per Unit(¥)

467,827

467,887

469,326

469,315

469,193

Total Cash Distribution(¥mln)

1,955

1,965

1,836

1,875

1,856

Cash Distribution per Unit(¥)

12,161

12,221

12,17012,424

12,302of which Cash Distribution of Profits(¥)

12,161

12,221

12,17012,424

12,302of which Cash Distribution in excess of Profits

(¥)

－

－

－

－

－

ROA (Return on Assets) (Note 1)

(%)

1.2

1.2

1.2

1.2

1.2

Annualized ROA (Note 2)

(%)

2.3

2.4

2.4

2.4

2.4

ROE (Return on Equity) (Note 3)

(%)

2.6

2.7

2.6

2.6

2.6

Annualized ROE (Note 2)

(%)

5.2

5.4

5.3

5.3

5.2

Capital Adequacy Ratio (Note 4)

(%)

44.8

44.8

45.2

45.2

45.2

(%)

（＋0.0）（-0.5）（＋0.0）（＋0.0）（＋0.0）LTV (Loan-to-Value) (Note 5)

(%)

53.4

53.5

53.0

53.0

53.1

Number of Operating Days

(days)

182

183

182

183

183

Payout Ratio (Note 6)

(%)

99.9

100.0

97.8

99.9

99.9

Number of Properties Held(bldgs)

153

155

152

153

152

Total Leasable Floor Space(㎡)

274,346.62

277,166.54

262,961.11

262,881.53

261,275.90(Changes from Previous Period)

Number of Tenants(tenants)

153

155

152

153

152

Occupancy Rate

(%)

95.8

96.2

96.4

96.2

96.2

Depreciation(¥mln)

1,053

1,012

967

968

963

Capital Expenditures(¥mln)

95

94

138

40

41

NOI (Net Operating Income) (Note 7)(¥mln)

4,156

4,118

3,953

4,010

4,016

FFO (Funds from Operation) (Note 8)(¥mln)

2,979

2,934

2,833

2,850

2,818

FFO per Unit (Note 9)(¥)

18,52818,251

18,773

18,886

18,671

Note 1: “ROA (Return on Assets)” = Ordinary Income / {(Total Assets at the beginning of the period + Total Assets at the end of the period) / 2} x 100
As for 11th period and 14th period, the Total Assets were time-adjusted due to the additional issuance of investment units.
Note 2: “ROA” and “ROE” are annualized using the following number of operating days. 11th Period: 183 days, 12th Period: 183 days, 13th Period: 182 days, 14th Period: 183 days
and. 15th Period: 182 days
Note 3: “ROE (Return on Equity)” = Net Income / {(Net Assets at the beginning of the period + Net Assets at the end of the period) / 2} x 100
As for 11th period and 14th period, Net Assets were time-adjusted due to the additional issuance of investment units.
Note 4: “Capital Adequacy Ratio” = Net Assets / Total Assets x 100
Note 5: “LTV (Loan-to-Value)” = Interest-Bearing Debts / Total Assets x 100
Note 6: Rounded off to the first decimal place.
Note 7: “NOI (Net Operating Income)” = Real Estate Rental Revenues – Real Estate Rental Expenses + Depreciation
Note 8: “FFO (Funds from Operation) = Net Income + Depreciation + Amortization of Investment Corporation Bonds Issuance Costs – Real Estate Sale Profit/Loss
Note 9: “FFO per Unit” = FFO / Number of Units Issued-7-2. OUTLINE OF INVESTMENTS IN THE 15TH FISCAL PERIOD
Nomura Real Estate Residential Fund was incorporated on August 3, 2006 under the Act on Investment Trusts andInvestment Corporations of Japan, and listed Investment Securities that represent the units of investment equity of theCompany in the Real Estate Investment Trust (REIT) Market of the Tokyo Stock Exchange (TSE) on February 14, 2007
(TSE code: 3240).
The Company’s basic investment policy is to assure stable income and steady portfolio asset growth over the
medium-to-long-term through investment in specified assets such as properties and property-related securities.
We invest in properties with a focus on residential use in accordance with the Company’s basic policy (securities
specified for residential properties). In addition, in order to realize stable income over the medium-to-long term, we carryout expeditious asset management according to property characteristics and market conditions (medium-to-long term
stable management).
Note:
The Law Concerning Investment Trusts and Investment Corporations of Japan (Law No. 198 of 1951) is referred to as the "Investment Trust Law" hereinafter.
The Tokyo Stock Exchange is referred to hereinafter as the “TSE”.
The units of investment equity means the units of investment equity of the Company.
The term “property (ies)” refers to those assets defined in Section 29, Paragraph 1, Article (1) and (2), and “property-backed securities” refers to those assets defined in Section
29, Paragraph 1, Article (3) respectively of the Articles of Incorporation of the Company.
The terms “property (ies)” and “property-backed securities” are collectively referred to as “property-related assets” hereinafter.
The properties and underlying properties of the property-related assets are collectively referred to as the “investment properties”.
The term “investment assets” refers to those assets that belong to the Company.

(1) Market Environments and fund performance
The Japanese economy continued to show modest upward momentum as the effects of the government’s fiscal policy andBank of Japan’s bold monetary easing rippled across the real economy. While the employment and income environment
improved, consumer spending and housing investment remained strong. Entering 2014, the market environment became
unstable due to such factors as economic unrest in emerging countries, uncertainty over the situation in Ukraine andconcerns of economic slowdown in China, but with improvement in domestic corporate earnings, as well as pickup in
capital investment and increase in also demand for reconstruction from the Great East Japan Earthquake and other public
works investment, the Japanese economy is showing economic recovery led by domestic demand. According to Bank ofJapan’s April 2014 Short-Term Economic Survey of Enterprises in Japan (Tankan), the business conditions DI for all
enterprises and all industries improved 4 points over the previous survey. Although thought to be temporarily affected by
the consumption tax hike, the modest upward momentum is forecast to continue going forward.
In such an environment, with domestic and foreign investment capital flowing into real estate markets, including the
J-REIT market, and backed also by a favorable environment for fund procurement due to monetary easing, J-REITs areactively acquiring properties accompanying new listings and issuance of new investment units through public offerings.
In the rental housing market, stable demand is anticipated to continue for rental housing for single and small
households due in part to population inflow continuing in the Greater Tokyo Area (Tokyo, Kanagawa, Chiba and Saitama
prefectures) and major regional cities as well as such factors as trends of late marriages and declining birth rates. In
addition, in terms of supply, rental housing construction starts remain low, implying that the supply and demand balanceof rental housing will remain in a favorable environment for some time. Under such circumstances, the occupancy rate ofrental housing held by J-REITs has been hovering at a level exceeding 96% on average since July 2011. Concerning rent
levels, too, properties with increase have been observed. These, among other factors, suggest that the rental housing
market is on a recovery trend.
In the real estate transaction market, property acquisitions are active, centering on J-REITs and other real estate funds
and real estate companies, due in part to foreign investment capital inflow as well as also a favorable environment forfund procurement due to monetary easing and the leasing market showing signs of recovery. On the other hand,competition over acquisitions is forecast to intensify further going forward due in part to increase in deal participants.
In the management environment described above, the Company made the following management achievements in the
15th fiscal period (ended May 2014).

-8-

(a) Asset Acquisition and Disposition.
The Company has fully utilized the strong sourcing routes of each property brand listed in the table below, and has
continued acquisition activities.
Brand

Acquisition Strategy

PROUD FLAT

Strategic Cooperation with Nomura Real Estate Development

Properties planned/developmentby Nomura Real Estate Development（Note:1）

The strategic cooperation with Nomura Real Estate Development enables
the Fund to undertake the development and acquisition of PROUD FLAT,a residential property brand, which utilizes residential property related
know-how for land acquisition, product planning, management, etc. This
plays the pivotal role of the Fund’s growth strategy and the Fund will
utilize it to the full extent.

PRIME URBAN
Utilization of Networks with Providers Utilizationof Nomura Real Estate Group Information Networks

Properties planned/developed by companies
other than Nomura Real Estate
Development

Proactively utilizing the network with providers built through the
management of private funds which extends over 5 years and the Fund’s
management which extends over 7 years. By utilizing the expansive
brokerage network held by Nomura Real Estate Group, pursuit ofcollecting adequate information on properties for selling will be fulfilled.

（Note:2）
Note:1: Hereinafter, Nomura Real Estate Development refers to Nomura Real Estate Development Co., Ltd. Nomura Real Estate Group refers to a corporate group consistingof the consolidated subsidiaries of Nomura Real Estate Holdings, Inc. (hereinafter referred to as “Nomura Real Estate Holdings”) including Nomura Real Estate
Development (hereinafter referred to as “NRED”) but excluding Nomura Real Estate Asset Management Co., Ltd., to which the Company assigns asset managementrelated operations.Age of buildings above means that of the relevant property at the time of acquisition by the Company.
Note 2: Concerning properties planned/developed by companies other than Nomura Real Estate Development, we have been using the two na mes PRIME URBAN and
URBAN STAGE according to building age at the time of acquisition, but these will be unified to PRIME URBAN, starting from May 20, 2014, in an attempt tofurther enhance property recognition along with PROUD FLAT. Name changes have been made for 31 properties as of the date of this document and a series ofchanges are scheduled to follow for other properties, too.

In the 15th fiscal period, as it did in previous fiscal periods, the Company continued to implement its strategy forproperty replacement to enhance the portfolio profitability and quality, transferring two properties totaling 1,675
million yen (sum total of transfer prices) in the fiscal period that were expected to show a decrease in property
competitiveness and an increase in maintenance costs due to their ages and other factors.
As a result of the above, the size of assets at the end of the 15th fiscal period (as of May 31, 2014) was 153 properties
amounting to 160,247 million yen (sum total of acquisition prices).

-9-

(b) Property Management
In terms of property management of portfolio properties, although the 15th fiscal period was a period that included thefiscal year end when there is frequent tenant turnover, advertising activities were enhanced and showrooms withinbuildings were proactively utilized to lease up the seven new properties that were acquired in September 2013 andmaintain the high occupancy status of existing properties.
In leasing, the Company worked to maintain and enhance property competitiveness by continuing to conduct
renovations as well as by raising the unit price of rent through a flexible review of advertising terms and conditions inlight of the status of respective properties. In addition, the Company endeavored to shorten the vacancy period bycontrolling the construction period for restoration of units to their original state, as it had done in previous fiscal
periods. These and other efforts allowed the Company to maintain the portfolio occupancy rate at the end of the 15th
fiscal period at a high level of 95.8%.
Moreover, the Company changed the property management companies (hereafter referred to as the “PMcompanies”) for 20 properties under management in the Greater Tokyo Area to Nomura Real Estate Partners Co., Ltd.
(Note) on December 1, 2013. As a result, Nomura Real Estate Partners’ services for tenants “Chintai Hotto Support”(24-hour call center for trouble with equipment within residential units and other emergency matters; travel, leisureand other special benefits, etc.) have been introduced to a total of 117 properties as of the date of this document, which
the Company believes will serve to enhance tenant satisfaction and property competitiveness. Furthermore, as
mentioned above, unification of property names has been underway, starting from May 20, 2014, in an attempt toenhance the recognition of portfolio properties.
In this manner, the Company is continuing its efforts to maintain and enhance occupancy rates, enhance rent
levels and enhance tenant satisfaction by appropriately meeting market needs.
Note: Nomura Living Support Co., Ltd. merged with Nomura Building Management Co., Ltd. as the existing company on April 1, 2014 and changed the trade name to
Nomura Real Estate Partners Co., Ltd. The same shall apply hereinafter.

(c) Status of Funding
In order to assure stable income and the steady growth of portfolio assets over the medium-to-long-term, the Company
undertook conservative financial strategies in the 15th fiscal period as shown below.
Regarding refinancing of 9,200 million yen in existing loans, these were refinanced into three long-term loans
with fixed interest rates (including those for which the interest rate was fixed through interest rate swap transactions)to achieve lengthening of loan periods and fixing of interest rates of interest-bearing debt and thereby enhancing
financial stability and addressing the risk of rising interest rates.
As a result, the ratio of long-term debt is 83.9%, the ratio of fixed interest debt (including fixation throughinterest rate swap transactions) is 96.5%, the average maturity of the outstanding interest-bearing debt is 3.21 years(the average maturity of the outstanding long-term interest-bearing debt is 3.72 years). In the end, the rate ofinterest-bearing debt in the total assets, which is the loan-to-value (LTV) ratio, becomes 53.4%.
The table below shows the credit ratings of the Company as of the end of the 15th fiscal period.
Rating Company
Japan Credit Rating Agency, Ltd

Standard & Poor’s Ratings Services.

RatingOutlookLong-term Senior Debt Rating：AA

StableLong-term corporate credit rating：A

StableShort-term Corporate Credit Rating ：A-1－(d) Financial Performance and Distributions
As a result of the above-described management during the 15th fiscal period, the Company recorded 5,594 million yen
in operating revenue, 2,513 million yen in operating profit, 1,956 million yen in ordinary income, and 1,955 million
yen in net income.
Concerning distribution, in order to qualify for special tax treatment under Article 67-15 of the Act on Special
Measures Concerning Taxation (Act No. 26 of 1957) to have the maximum amount of cash distribution treated as
deductible dividends, the Company decided to distribute the entire amount of retained earnings, excluding fractions of
the distribution amount per unit less than one yen. As a result, the amount of cash distribution per unit for this fiscal
period was 12,161 yen.

- 10 -

3. STATUS OF CAPITAL
Changes in the number of units issued and unitholders’ Capital until the end of the 15th fiscal period (as of May 31, 2014) are
as follows:
Date

Number of Units Issued (Unit)
ChangeBalance
400

Type of Issue

Unitholders’ Capital (¥ mln)
ChangeBalance240Aug. 3, 2006

Initial private placement (Note 1)

Sep. 26, 2006

Private Offering (Note 2)

17,93018,330400

10,758

10,998240

Feb.13 , 2007
Mar.13, 2007

Public offering (Note 3)
Third-party allotment (Note 4)

47,4002,370

65,73068,10028,816
1,440

39,814
41,255

Feb.13, 2008
Mar.11, 2008

Public offering (Note 5)
Third-party allotment (Note 6)

27,3001,365

95,40096,765

11,918595

53,17353,769Dec. 7, 2009
Dec.24, 2009

Public offering (Note 7)
Third-party allotment (Note 8)

27,4001,370

124,165
125,535

7,647
382

61,417
61,799Dec. 1, 2011

Public offering (Note 9)23,629149,164

6,662

68,461

Dec.20, 2011
Aug.26, 2013

Third-party allotment (Note 10)
Public offering (Note 11)

1,772
9,306

150,936
160,242

499
4,028

68,961
72,989Sep.25, 2013

Third-party allotment (Note 12)558
160,800
241
73,231
Note1: Investment units were issued at issue price of 600,000 yen per unit upon establishment of the Fund.
Note2: Additional investment units were issued at the price of 600,000 yen per unit for the purpose of financing acquisition of new properties, etc. Asset management commenced.
Note3: Additional investment units were issued at 630,000 yen per unit (subscription price: 607,950 yen) in a public offering, for the purpose of financing acquisition of new
properties and repayment of debt.
Note4: In conjunction with the public offering on February 13, 2007, investment units were allocated to Nomura Securities Co., Ltd., at 607,950 yen per unit issue price.
Note5: Additional investment units were issued at 451,780 yen per unit (subscription price: 436,567 yen) in a public offering, for the purpose of financing repayment of debt.
Note6: In conjunction with the public offering on February 13, 2008, investment units were allocated to Nomura Securities Co., Ltd., at 436,567 yen per unit issue price.
Note7: Additional investment units were issued at 289,545 yen per unit (subscription price: 279,097 yen) in a public offering, for the purpose of financing acquisition of new
properties and repayment of debt.
Note8: In conjunction with the public offering on December 7, 2009, investment units were allocated to Nomura Securities Co., Ltd., at 279,097 yen per unit issue price.
Note9: Additional investment units were issued at 292,193 yen per unit (subscription price: 281,951 yen) in a public offering, for the purpose of financing acquisition of new
properties.
Note10: In conjunction with the public offering on December 1, 2011, investment units were allocated to Nomura Securities Co., Ltd., at 281,951 yen per unit issue price.
Note11: Additional investment units were issued at 448,500 yen per unit (subscription price: 432,860 yen) in a public offering, for the purpose of financing acquisition of new
properties.
Note12: In conjunction with the public offering on August 26, 2013, investment units were allocated to Nomura Securities Co., Ltd., at 432,860 yen per unit issue price.

[Changes in Price at the Tokyo Stock Exchange]
Changes in prices of the Company’s investment units listed on the Tokyo Stock Exchange are as follows.

High

(¥)

15th Period
from Dec. 1, 2013
to May 31, 2014
581,000

Low(¥)

504,000

14th Period
from Jun. 1, 2013
to Nov. 30, 2013
572,000

13th Period
from Dec. 1, 2012
to May 31, 2013
670,000

12th Period
from Jun. 1, 2012
to Nov. 30, 2012
493,000

11th Period
from Dec. 1, 2011
to May 31, 2012
440,000

439,000

439,000

372,000

312,500

4. CASH DISTRIBUTION
In order to qualify for special tax treatment under Article 67-15-1 of the Act on Special Measures Concerning Taxation tohave maximum cash distribution amount treated as deductible dividends, the Company distributed the entire unappropriatedretained earnings except for fractional amounts smaller than one yen per each investment unit. As a result, the amount of cash
distribution per unit for this fiscal period was ¥12,161.
14th Period
from Jun. 1, 2013
to Nov. 30, 2013
1,965,201

13th Period
from Dec. 1, 2012
to May 31, 2013
1,876,958

12th Period
from Jun. 1, 2012
to Nov. 30, 2012
1,875,347

11th Period
from Dec. 1, 2011
to May 31, 2012
1,856,892

Retained Earnings(¥000)

15th Period
from Dec. 1, 2013
to May 31, 2014
1,955,587

Accumulated earnings
Total cash distribution(¥000)(¥000)

98
1,955,488

64
1,965,136

40,067
1,836,891

118
1,875,228

77
1,856,814(Cash distribution per unit)of which distribution of profits(¥)(¥000)(12,161)
1,955,488(12,221)1,965,136(12,170)
1,836,891(12,424)
1,875,228(12,302)
1,856,814(¥)(12,161)(12,221)(12,170)(12,424)(12,302)(¥000)
(¥)

(-)

(-)

(-)

(-)

(-)

(Distribution of profits per unit)of which refund of capital(Refund of capital per unit)- 11 -

5. INVESTMENT POLICY AND FUTURE ISSUESAs described earlier in “2. OUTLINE OF INVESTMENTS IN THE 15TH FISCAL PERIOD,” the Japanese economy isindicating trends of economic recovery, as evident by such factors as fiscal policy and monetary policy leading to recovery incorporate business performance and improvement in consumer sentiment. Consequently, investment capital is flowing into
the J-REIT market, showing signs of recovery.
In such a business environment, the Company will aim to secure stable revenues and steady growth of portfolio assets overthe medium to long term by conducting management that makes the most of the Company’s strengths.
(a) Property Acquisition
The Company has set 300 billion yen in total assets as the goal of the size of its assets in the future. The Company willcontinue striving to make selective investments by utilizing its strong sourcing channels to obtain information on
prime properties at an early stage, while taking into consideration the financial composition. By doing so, theCompany intends to promote the building of a portfolio that generates stable revenues over the medium to long term,
as it works to further diversify the portfolio while keeping its portfolio assets well-balanced in terms of building age,etc.
(b) Property Replacement
The Company will continue to implement property replacement in the portfolio for the purpose of enhancing portfolio
quality as well as stabilizing and increasing revenues over the medium to long term. Upon conducting replacement, theCompany will use the funds obtained from selling properties in the portfolio to acquire new properties so that it canmaintain its conservative financial strategy.
(c) Property Management
The Company will continue working to maintain and enhance revenues by promoting property management in an
integrated manner with the PM companies and establishing appropriate leasing strategies for each property, while
endeavoring to reduce costs at its investment properties as much as possible. By doing so, the Company aims tomaximize performance of the portfolio.
The Company will work to maintain and enhance the competitiveness and profitability of its investment
properties by considering and implementing various measures for enhancing the occupancy rates and cash flows
through grasping the characteristics of each investment property and analyzing market needs, among other things, aswell as by implementing large-scale repairs and remodeling works in a timely and appropriate manner.
(d) Fund Procurement
The Company will continue to establish an appropriate financial base by properly controlling the risk of interest rate
fluctuations through fixing interest rates and lengthening loan periods, as well as distributing repayment dates,
diversifying lending institutions and fund procurement means, and procuring funds in unsecured and unguaranteedloans. In addition, the Company will continue to pursue a well-balanced composition of its interest-bearing debt byconsidering and selecting the optimum fund procurement means from among a range of options, while closely
monitoring financial market trends.

6. IMPORTANT EVENTS SUBSEQUENT TO THE 15TH FISCAL PERIOD
Transfer of a Property
On June 30, 2014, the Company entered into a sale and purchase agreement regarding the transfer of the property stated below
and completed the transfer. Consumption taxes and adjustments of property taxes are excluded from the transfer price.
URBAN STAGE Minami Gyotoku IV
Type of Asset: Real estate
Date of Agreement: June 30, 2014
Transfer Date
: June 30, 2014
Transfer Price: ¥256,840 thousand
Transferee: Japanese general operating company
Impact on Revenues : Approximately ¥6 million (miscellaneous expenses excluded) of gain on sale of real estate will berecorded for the 16th fiscal period (from June 1, 2014 to November 30, 2014).

(Reference)

Resolutions passed at the 5th General Unitholders’Meeting

At the Company’s 5th General Unitholders Meeting scheduled to be held on July 31, 2014, the Company is scheduled
to propose election of one Executive Director, one substitute Executive Director, two Supervisory Directors and one
substitute Supervisory Director. The Company is scheduled to also propose partial amendment of the Articles of- 12 -

Incorporation of content that includes amendment in correlation with revision of the Investment Trust Law (newestablishment of provisions pertaining to purchase of own investment units, amendment of provisions to allow
omission of the public notice in the procedures for convocation of general unitholders meetings, new establishment ofprovisions on the record date pertaining to exercise of voting rights at general unitholders meetings, etc.); newestablishment of provisions providing that the period that a resolution pertaining to the election of substitute executive
directors and substitute supervisory directors remains in force shall, in principle, be the same as the term of office ofthe executive directors and supervisory directors being substituted; amendment to allow the deadline for dispatch of
the notice of convocation of meetings of the Board of Directors to be shortened without the consent of all executive
directors and supervisory directors when there is an urgent necessity; amendment in correlation with revision of theOrdinance for Enforcement of the Law Concerning Investment Trusts and Investment Corporations to provide to theeffect that its purpose shall be to manage assets mainly as investment in real estate, etc. assets specified in the
Ordinance for Enforcement of the Law Concerning Investment Trusts and Investment Corporations; and other requiredchanges from the perspective of standardization of expressions, clarification of content, and response to and ensuring
compliance with cases where laws and regulations, etc. are revised, etc.

- 13 -

Profile of the Company
1. STATUS OF UNITHOLDERS’ CAPITAL
15th Period(as of May 31, 2014)

14th Period(as of Nov. 30, 2013)

13th Period(as of May 31, 2013)

12th Period(as of Nov. 30, 2012)

11th Period(as of May 31, 2012)(Unit)

2,000,000

2,000,000

2,000,000

2,000,000

2,000,000

Number of units issued(Unit)

160,800

160,800

150,936

150,936

150,936

Amount of unitholders’ capital(¥ mln)73,231

73,231

68,961

68,961

68,961

10,595

11,13910,720

9,446

9,895

Maximum number
allowed to issue

of

units

Number of unitholders

2. MATTERS CONCERNING THE INVESTMENT UNITS
The 10 largest unitholders as of May 31, 2014 were as follows.
Name

Number of Units Held (Unit)

Portion in the Total Units Issued (%)

Japan Trustee Services Bank, Ltd. （Trust Account）

45,54028.32

Nomura Real Estate Development Co., Ltd.

15,240

9.48

The Nomura Trust and Banking Co., Ltd. （Investment Account）

8,049

5.01

The Master Trust Bank of Japan, Ltd. （Trust Account）

5,076

3.16

Trust and Custody Services Bank, Ltd. (Securities Investment Trust Account)

5, 036

3.13

The Fuji Fire and Marine Insurance Co., Ltd.
(Standing Proxy: Japan Trustee Services Bank, Ltd.)

3,212

2.00

Trust and Custody Services Bank, Ltd. （Money Trust Tax Account）

3,010

1.87

The Joyo Bank, Ltd.
(Standing Proxy: The Master Trust Bank of Japan, Ltd.)

2,502

1.56

The Fukui Bank,Ltd.

1,987

1.24

The Hokuriku Bank, Ltd.

1,867

1.16

91,519

56.91

Total

3. BREAKDOWN OF UNITHOLDERS
The breakdown of unitholders as of May 31, 2014 was as follows.
Number ofUnitholders
Private and other investors

Number of Units
per Unitholder

Portion (%)

Portion (%)

10,18096.1

29,40918.3

Financial institutions(Including sales agents for financial instruments firm)

101

1.0

100,494

62.5

Other domestic corporate investors

190

1.8

21,071

13.1

Foreign corporate investors, etc.

124

1.2

9,826

6.1

Total

10,595100.0

160,800

100.0- 14 -

4. DIRECTORS AND AUDITOR(1) Name of directors and an auditor in the 15th fiscal period are as follows (Note 1)
Title

Name

Total Amount of Fees Paid
during the 15th Period(¥000)

Other Major Title(s)Executive Director

Masatomi Natsume

NRF Chief Investment Officer, Nomura Real Estate Asset Management, Co.,
Ltd.

Supervisory Director

Eitoku Aikawa

Director, Japan Association of Real Estate Counselors

2,400Supervisory Director

Motoharu Yokose

Advisor, Asahi Tax Corporation.
Auditor, YAMATO HOLDINGS CO., LTD.

2,400

Accounting Auditor

Ernst & Young ShinNihon LLC––

11,200－Note 1: No Executive Directors or Supervisory Directors are in possession of the Company’s investment units either under their own or another person’s name. Other companies atwhich Supervisory Directors serve as directors have no mutual business interests whatsoever with the Company.
Note 2: Mr. Nobuyuki Hamada, former Advisor to Nomura Real Estate Asset Management Co., Ltd., which is the asset management company of the Company, has been appointed as
substitute Executive Director to provide against vacancy of the Executive Director’s position or lack of statutory quorum.
Note 3: Mr. Saneaki Ichijo has been appointed as substitute Supervisory Director to provide against vacancy of the Supervisory Director’s position or lack of statutory quorum. Mr.
Saneaki Ichijo is Supervisory Director of Nomura Real Estate Office Fund, Inc., which entrusts the asset management company of the Company to provide asset
management services.

(2) Policy on Determining the Dismissal and Denial of Reappointment of Accounting Auditors
In case an item listed under Article 105, Paragraph 1 of the Investment Trust Law becomes applicable to the accounting
auditor, and the Board of Directors determines that there is no likelihood of improvement, the Board of Directors shall dismiss
the accounting auditor by unanimous vote of all board members.
In addition, if the Board of Directors determines that the accounting auditor is inappropriate for the position having
given thorough consideration to its execution of business and other factors, the Board of Directors shall dismiss or denyreappointment of the accounting auditor, and present an agenda for appointment of a new accounting auditor at the General
Unitholders’ Meeting.

5. ASSET MANAGEMENT COMPANY, CUSTODIANS AND ADMINISTRATORSBusiness

Company Name(s)Asset Management Company

Nomura Real Estate Asset Management Co., Ltd.

Custodian of assets

Mitsubishi UFJ Trust and Banking Corporation

Custodian of unitholders’ register

Mitsubishi UFJ Trust and Banking Corporation

Manager of special accounts

Mitsubishi UFJ Trust and Banking Corporation

General Administration (accounting, etc.)

Heiseikaikeisha(“HSK”) Tax Corporation

General Administration(Administrative work for organizational operation)

Mitsubishi UFJ Trust and Banking Corporation

General Administration (Financial agent.)

The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation- 15 -

Status of Investment Assets of the Company
1. COMPOSITION OF ASSETS
Type of Assets

Area

Real estate
Real estate in trust

14th Period (as of Nov. 30, 2013)
Total AmountPortion(¥ mln) (Note 3)(%) (Note 4)

15th Period (as of May. 31, 2014)
Total AmountPortion(¥ mln) (Note 3)(%) (Note 4)

Greater Tokyo Area

107,081

63.8

98,094

58.4

Other

28,17716.8

28,442

16.9

Greater Tokyo Area

20,50412.2

31,637

18.8

Other

2,030
157,793

1.2
94.0

2,046

1.2

160,219

95.4

SubtotalCash, deposits and other assets

10,147

6.0

7,799

4.6

Grand Total

167,940100.0

168,019100.0

Note 1: Primary use is apartment building.
Note 2: “Greater Tokyo Area” refers to the metropolis of Tokyo and the three surrounding prefectures, Kanagawa, Chiba and Saitama.
“Other Areas” refer to the three major metropolitan areas, excluding Tokyo, and other major cities throughout Japan, including government designated cities. The same shallapply hereinafter.
Note 3: Total amount is taken from the balance sheet. (Real Estate and Real Estate in Trust represent the total book value after depreciation.)
Note 4: The percentage figures may not necessarily add up to 100 due to rounding to the nearest first decimal place.

2. BRIEF OF MAJOR PROPERTIES OWNED
The major component assets of the Company (the 10 largest properties by book value) as of the end of the 15th fiscal period
are as follows.
Name of Property

Book Value(¥ mln)Leasable Floor
Space (m2)

Leased Space(m2)

Occupancy Rate(%)

Portion of Rental
Revenues (%)

Primary Use

PRIME URBAN Meguro Ohashi Hills

3,599

2,955.74

2,824.77

95.6

1.5

Apartment building

URBAN STAGE Sapporo Riverfront

3,581

15,552.59

14,998.12

96.4

3.4

Apartment building

PRIME URBAN Nihonbashi Yokoyamacho

3,476

5,926.17

5,898.17

99.5

2.3

Apartment building

URBAN STAGE Ikebukuro

3,418

4,376.95

4,068.93

93.0

1.9

Apartment building

PROUD FLAT Shirokane Takanawa

3,399

2,950.11

2,732.03

92.6

1.7

Apartment building

PROUD FLAT Kamata II

2,907

4,051.72

3,995.53

98.6

1.9

Apartment building

URBAN STAGE Izumi

2,900

7,543.10

7,233.81

95.9

2.4

Apartment building

URBAN STAGE Kagurazaka

2,728

2,853.82

2,833.34

99.3

1.5

Apartment building

PROUD FLAT Kamiooka

2,570

4,872.17

4,263.38

87.5

1.4

Apartment building

PRIME URBAN Musashi Koganei

2,500

5,999.80

5,634.30

93.9

1.3

Apartment building

Total

31,08357,082.17

54,482.38

95.4

19.4

- 16 -

3. DETAILS OF PORTFOLIO PROPERTIES

AreaGreaterTokyo
Area

Location(Postal Address)

Name of Property

Type ofOwnership(Note 1)

Appraisal Valueas of May 31,
2014 (¥ mln)
(Note 2)

PROUD FLAT Shirokane Takanawa

5-12-7 Mita, Minato-ku, Tokyo

Real estate

3,220

PROUD FLAT Yoyogi Uehara

3-25-7 Uehara, Shibuya-ku, Tokyo

Beneficial
Interest

925

PROUD FLAT Hatsudai

2-19-15 Hatsudai, Shibuya-ku, Tokyo

Real estate

684

PROUD FLAT Shibuya Sakuragaoka

21-8 Sakuragaoka, Shibuya-ku, Tokyo

Real estate

704

PROUD FLAT Gakugei Daigaku

2-21-20 Meguro Honcho, Meguro-ku, Tokyo

Real estate

711

PROUD FLAT Meguro Gyoninzaka

1-4-18 Shimo Meguro, Meguro-ku, Tokyo

Real estate

879

PROUD FLAT Sumida Riverside

1-31-7 Shinkawa, Chuo-ku, Tokyo

Real estate

2,140

PROUD FLAT Kagurazaka

1-11 Higashi Gokencho, Shinjuku-ku, Tokyo

Real estate

1,520

PROUD FLAT Waseda

521-9 Waseda Tsurumaki-cho, Shinjuku-ku, Tokyo (Note3)

Real estate

1,050

PROUD FLAT Shinjuku Kawadacho

3-29 Kawadacho, Shinjuku-ku, Tokyo

Real estate

905

PROUD FLAT Sangen Jaya

1-4-25 Taishido, Setagaya-ku, Tokyo

Real estate

1,140

PROUD FLAT Kamata

4-21-4 Kamata, Ota-ku, Tokyo

Real estate

1,080

PROUD FLAT Kamata II

4-25-5 Kamata, Ota-ku, Tokyo

Real estate

3,230

PROUD FLAT Shinotsuka

3-12-10 Minami Otsuka, Toshima-ku, Tokyo

Real estate

582

PROUD FLAT Kiyosumi Shirakawa

2-3 Takabashi, Koto-ku, Tokyo

Real estate

877

PROUD FLAT Monzen Nakacho II

2-6-9 Furuishiba, Koto-ku, Tokyo

Real estate

623

PROUD FLAT Monzen Nakacho I

2-3-1 Tomioka, Koto-ku, Tokyo

Real estate

976

PROUD FLAT Fujimidai

3-8-4 Nukui, Nerima-ku, Tokyo

Real estate

1,430

PROUD FLAT Asakusa Komagata

1-10-6 Komagata, Taito-ku, Tokyo

Real estate

1,900

PROUD FLAT Yokohama

8-18 Daimachi Kanagawa-ku, Yokohama-shi, Kanagawa (Note3)

Real estate

2,110

PROUD FLAT Kamioooka

3-4-6 Kamioooka Nishi, Konan-ku, Yokohama-shi, Kanagawa

Real estate

2,600

PROUD FLAT Tsurumi II

20-16 Toyooka-cho, Tsurumi-ku, Yokohama-shi, Kanagawa

Real estate

1,560

PRIME URBAN Azabu Juban

2-33-9 Higashi Azabu, Minato-ku, Tokyo

Real estate

1,020

PRIME URBAN Akasaka

7-6-19 Akasaka, Minato-ku, Tokyo

Real estate

887

PRIME URBAN Tamachi

3-6-13 Sibaura, Minato-ku, Tokyo

Beneficial
Interest

922

PRIME URBAN Shibaura LOFT

4-5-17 Shibaura, Minato-ku, Tokyo

Real estate

1,820

PRIME URBAN Hatagaya

3-28-6 Hatagaya, Shibuya-ku, Tokyo

Real estate

452

PRIME URBAN Yoyogi

3-51-3 Yoyogi, Shibuya-ku, Tokyo

Real estate(Note4)346

PRIME URBAN Bancho

2-9-1 Kudanminami, Chiyoda-ku, Tokyo

Real estate

1,040

PRIME URBAN Chiyoda Fujimi

2-1-9 Fujimi, Chiyoda-ku, Tokyo

Real estate

651

PRIME URBAN Iidabashi

4-8-9,11 Iidabashi, Chiyoda-ku, Tokyo

Beneficial
Interest

1,990

PRIME URBAN Ebisu

1-11-11 Mita, Meguro-ku, Tokyo

Real estate

1,190

PRIME URBAN Naka Meguro

3-28-24 Kami Meguro, Meguro-ku, Tokyo

PRIME URBAN Gakugei Daigaku

2-14-14 Takaban, Meguro-ku, Tokyo

PRIME URBAN Senzoku

2-20-8 Senzoku, Meguro-ku, Tokyo

PRIME URBAN Meguro Riverside

2-10-16 Shimo Meguro, Meguro-ku, Tokyo

Real estate

446

PRIME URBAN Meguro Ohashi Hills

2-4-16 Ohashi, Meguro-ku, Tokyo

Real estate

2,960- 17 -

Beneficial
Interest
Beneficial
Interest
Beneficial
Interest

1,340
731
457

Area

Greater

Location(Postal Address)

Name of Property

Type ofOwnership(Note 1)
Beneficial
Interest
Beneficial
Interest

Appraisal Valueas of May 31,
2014 (¥ mln)
(Note 2)PRIME URBAN Kachidoki

6-5-6 Kachidoki, Chuo-ku, Tokyo

PRIME URBAN Shinkawa

2-16-10 Shinkawa, Chuo-ku, Tokyo

PRIME URBAN Nihonbashi Yokoyamacho

3-4 Nihonbashi Yokoyamacho, Chuo-ku, Tokyo

Real estate

4,180

PRIME URBAN Hongo Ikizaka

2-16-3 Hongo, Bunkyo-ku, Tokyo

Real estate

572

PRIME URBAN Hakusan

1-7-9 Mukougaoka, Bunkyo-ku, Tokyo

Real estate

875

PRIME URBAN Yotsuya Gaien Higashi

14-62 Samoncho, Shinjuku-ku, Tokyo (Note3)

Real estate(Note4)

1,450

PRIME URBAN Ochiai

2-17-9 Nakai, Shinjuku-ku, Tokyo

Real estate329

Beneficial
Interest
Beneficial
Interest
Beneficial
Interest

2,440
2,090

PRIME URBAN Nishi Shinjuku I

1-19-3 Kita Shinjuku, Shinjuku-ku, Tokyo

1,040

PRIME URBAN Nishi Shinjuku II

5-6-4 Nishi Shinjuku, Shinjuku-ku, Tokyo

PRIME URBAN Shinjuku Naitomachi

1-55 Naitomachi, Shinjuku-ku, Tokyo (Note3)

PRIME URBAN Nishi Waseda

1-13-11 Nishi Waseda, Shinjuku-ku, Tokyo

Real estate

456

PRIME URBAN Sangen JayaⅢ

5-38-12 Kamiuma, Setagaya-ku, Tokyo

Real estate

680

PRIME URBAN Chitose Karasuyama

3-32-16 Kasuya, Setagaya-ku, Tokyo

Real estate(Note4)689

PRIME URBAN Karasuyama

4-5-15 Minami Karasuyama, Setagaya-ku, Tokyo

Real estate

339

PRIME URBAN Sangen Jaya

2-41-3 Sangen Jaya, Setagaya-ku, Tokyo

Beneficial
Interest

688

PRIME URBAN Minami Karasuyama

5-7-4 Minami Karasuyama, Setagaya-ku, Tokyo

Real estate

745

PRIME URBAN Karasuyama Galleria

4-10-24 Minami Karasuyama, Setagaya-ku, Tokyo

Real estate

565

PRIME URBAN Karasuyama Court

4-1-11 Minami Karasuyama, Setagaya-ku, Tokyo

Real estate

360

PRIME URBAN Chitose Funabashi

5-40-4 Sakuragaoka, Setagaya-ku, Tokyo

Real estate

760

PRIME URBAN Yoga

2-27-5 Yoga, Setagaya-ku, Tokyo

Real estate

1,310

PRIME URBAN Shinagawa Nishi

6-24-13 Yutaka-cho, Shinagawa-ku, Tokyo

Real estate

473

PRIME URBAN Oimachi

4-10-9 Oi, Shinagawa-ku, Tokyo

Real estate

483

PRIME URBAN Osaki

5-8-10 Osaki, Shinagawa-ku, Tokyo

Real estate(Note4)

1,750

PRIME URBAN Oimachi II

5-10-10 Higashi Oi, Shinagawa-ku, Tokyo

Real estate

1,030

PRIME URBAN Yukigaya

34-10 Kita Minemachi, Ota-ku, Tokyo

Real estate

933

PRIME URBAN Omori

1-15-1 Omori Kita, Ota-ku, Tokyo

Beneficial
Interest

847

PRIME URBAN Denenchofu Minami

12-5 Denenchofu Minami, Ota-ku, Tokyo

Real estate

773

PRIME URBAN Nakano Kamitakada

4-43-3 Kami Takada, Nakano-ku, Tokyo

Real estate

554

PRIME URBAN Takaido

4-10-12 Takaido Higashi, Suginami-ku, Tokyo

Real estate

1,040

PRIME URBAN Nishi Ogikubo

2-27-5 Nishi Ogiminami, Suginami-ku, Tokyo

Real estate

402

PRIME URBAN Otsuka

1-3-4 Nishi Sugamo, Toshima-ku, Tokyo

PRIME URBAN Komagome

6-12-15 Komagome, Toshima-ku, Tokyo

PRIME URBAN Monzen Nakacho

1-5-7 Monzen Nakacho, Koto-ku, Tokyo

PRIME URBAN Kameido

2-38-2 Kameido, Koto-ku, Tokyo

PRIME URBAN Sumiyoshi

2-23-3 Ogibashi, Koto-ku, Tokyo

Real estate

607

PRIME URBAN Mukojima

5-19-14 Higashi Mukojima, Sumida-ku, Tokyo

Real estate

513

PRIME URBAN Kinshi Koen

4-7-12 Taihei, Sumida-ku, Tokyo

PRIME URBAN Kinshicho

5-16-14 Kotobashi, Sumida-ku, Tokyo

870
424

Tokyo
Area

- 18 -

Beneficial
Interest
Beneficial
Interest
Real estate(Note4)
Real estate(Note4)

Beneficial
Interest
Real estate(Note4)

669
423
2,290
767

1,250
730

Area

Greater

Location(Postal Address)

Name of Property

Appraisal Valueas of May 31,
2014 (¥ mln)
(Note 2)

Real estate

686

PRIME URBAN Hirai

6-23-12 Hirai, Edogawa-ku, Tokyo

PRIME URBAN Kasai

6-18-5 Naka Kasai, Edogawa-ku, Tokyo

PRIME URBAN Kasai II

7-9-7 Higashi Kasai, Edogawa-ku, Tokyo

PRIME URBAN Kasai East

6-16-9 Higashi Kasai, Edogawa-ku, Tokyo

Real estate

1,150

PRIME URBAN Ekoda

1-10-5 Asahigaoka, Nerima-ku, Tokyo

Real estate

399

PRIME URBAN Itabashi Kuyakushomae

27-13 Honcho, Itabashi-ku, Tokyo

Real estate

1,090

PRIME URBAN Asakusa

3-33-11 Asakusa, Taito-ku, Tokyo

Real estate

375

PRIME URBAN Machiya South Court

3-73-5 Arakawa, Arakawa-ku, Tokyo

Real estate

1,820

PRIME URBAN Musashi Koganei

2-11-26 Nakacho, Koganei-shi, Tokyo

Real estate

1,900

PRIME URBAN Musashino Hills

2-1-2, 36 Kajinocho, Koganei-shi, Tokyo

Real estate

1,370

PRIME URBAN Koganei Honcho

4-14-25 Honcho, Koganei-shi Tokyo

Real estate

782

PRIME URBAN Kumegawa

1-5-6 Sakae-cho, Higashimurayama-shi, Tokyo (Note3)

Real estate

1,450

PRIME URBAN Musashi Kosugi comodo

2-902-1 Shin Maruko Higashi Nakahara-ku, Kawasaki-shi, Kanagawa(Note3)

Real estate

2,060

PRIME URBAN Shinyurigaoka

3-1-17 Manpukuji Asao-ku, Kawasaki-shi, Kanagawa

Real estate

1,150

PRIME URBAN Tsurumi Teraya

1-7-10 Teraya Tsurumi-ku, Yokohama-shi, Kanagawa

Real estate

477

PRIME URBAN Urayasu

3-2-13 Todaijima, Urayasu-shi, Chiba

Real estate(Note4)767

PRIME URBAN Gyotoku I

2-4-10 Fukuei, Ichikawa-shi, Chiba

Real estate

603

PRIME URBAN Gyotoku II

1-11-5 Suehiro, Ichikawa-shi, Chiba

Real estate

694

PRIME URBAN Gyotoku Ekimae

2-26-11 Gyotoku Ekimae, Ichikawa-shi, Chiba

Beneficial
Interest

466

PRIME URBAN Gyotoku EkimaeⅡ

4-6-14 Gyotoku Ekimae, Ichikawa-shi, Chiba

Real estate

493

PRIME URBAN GyotokuⅢ

1-2-8 Fukuei, Ichikawa-shi, Chiba

Real estate

826

PRIME URBAN Nishi Funabashi

437-1 Hongocho, Funabashi-shi, Chiba (Note3)

Beneficial
Interest

726

PRIME URBAN Kawaguchi

3-1-11 Sakae-cho, Kawaguchi-shi, Saitama

Real estate

1,620

URBAN STAGE Ebisu

1-13-3 Hiroo, Shibuya-ku, Tokyo

Real estate

1,080

URBAN STAGE Meguro Aobadai

3-18-9 Aobadai, Meguro-ku, Tokyo

Real estate

1,230

URBAN STAGE Gakugei Daigaku

3-14-15 Takaban, Meguro-ku, Tokyo

Real estate

997

URBAN STAGE Nihonbashi Hamacho

2-50-8 Nihonbashi Hamacho, Chuo-ku, Tokyo

Real estate

1,510

URBAN STAGE Naka Ochiai

1-7-19 Naka Ochiai, Shinjuku-ku, Tokyo

Real estate

595

URBAN STAGE Shinjuku Ochiai

4-10-9 Kita Shinjuku, Shinjuku-ku, Tokyo

Real estate

571

URBAN STAGE Mejiro

3-22-21 Shimoochiai, Shinjuku-ku Tokyo

Real estate

1,360

URBAN STAGE Kagurazaka346-3 Yamabukityo, Shinjuku-ku, Tokyo (Note3)

Real estate

2,720

URBAN STAGE Roka Koen

1-12-26 Minami Karasuyama, Setagaya-ku, Tokyo

Real estate

315

URBAN STAGE Kamiuma

5-26-14 Kamiuma, Setagaya-ku, TokyoURBAN STAGE Sangen Jaya II

2-4-16 Taishido, Setagaya-ku, TokyoURBAN STAGE Komazawa

2-7-18 Komazawa, Setagaya-ku, Tokyo

Real estate

346

URBAN STAGE Kamikitazawa

5-21-22 Kami Kitazawa, Setagaya-ku, Tokyo

Real estate

590

URBAN STAGE Nakano

2-17-1 Kami Takada, Nakano-ku, Tokyo

Real estate

474

URBAN STAGE Ikebukuro

2-50-4 Ikebukuro, Toshima-ku, Tokyo

Real estate

3,610

Tokyo
Area

Type ofOwnership(Note 1)

- 19 -

Real estate(Note4)
Beneficial
Interest

Beneficial
Interest
Real estate(Note4)

630
970

820
457

Area

GreaterTokyo
Area

Location(Postal Address)

Name of Property

Type ofOwnership(Note 1)

Appraisal Valueas of May 31,
2014 (¥ mln)
(Note 2)URBAN STAGE Hino

536-2 Hino Oaza, Hino-shi, Tokyo (Note3)

Real estate

314

URBAN STAGE Kawasaki

1-4-15 Honcho Kawasaki-ku, Kawasaki-shi, Kanagawa (Note3)

Real estate

958

URBAN STAGE Urayasu

2-11-5 Todaijima, Urayasu-shi, Chiba

Real estate

218

URBAN STAGE Minami Gyotoku II

1-4-18 Hiro, Ichikawa-shi, Chiba

Real estate

231

URBAN STAGE Minami Gyotoku III

1-21-23 Ainokawa, Ichikawa-shi, Chiba

Real estate

233

URBAN STAGE Minami Gyotoku IV

1-5-18 Hiro, Ichikawa-shi, Chiba

Real estate

218

Subtotal

Other

124,845PROUD FLAT Itsutsubashi

2-5-2 Itsutsubashi, Aoba-ku, Sendai-shi, Miyagi

Real estate

608

PROUD FLAT Kawaramachi

2-10 Aza Hachikenkoji, Minami Koizumi, Wakabayashi-ku, Sendai-shi,
Miyagi (Note3)

Real estate

691

PROUD FLAT Shin Osaka

6-11-7 Nishi Nakajima Yodogawa-ku, Osaka-shi, Osaka

Real estate

1,520

PRIME URBAN Yamahana

1-27 Nishi 14-Chome minami 17-Jo, Chuo-ku, Sapporo-shi, Hokkaido

Real estate

269

PRIME URBAN Kita Juyo Jo

2-1 Higashi 1-Chome Kita 14-Jo, Higashi-ku, Sapporo-shi, Hokkaido

Real estate

269

PRIME URBAN Odori Koen I

12 Nishi 9-Chome Minami 1-Jo, Chuo-ku, Sapporo-shi, Hokkaido (Note3)

Real estate

471

PRIME URBAN Odori Koen II

12-1 Nishi 9-Chome Minami 1-Jo, Chuo-ku, Sapporo-shi, Hokkaido(Note3)

Real estate

312

PRIME URBAN Kita Juichi Jo

1-3 Higashi 1-Chome Kita 11-Jo, Higashi-ku, Sapporo-shi, Hokkaido

Real estate

592

PRIME URBAN Miyanosawa

10-20 9-Chome Hassamu 6-Jo Nishi-ku, Sapporo-shi, Hokkaido

Real estate

533

PRIME URBAN Odori Higashi

12-63 Higashi 7-Chome Odori, Chuo-ku, Sapporo-shi, Hokkaido (Note3)

Real estate

444

PRIME URBAN Chiji Kokan

1-12 Nishi 17-Chome Kita 4-Jo, Chuo-ku, Sapporo-shi, Hokkaido (Note3)

Real estate

299

PRIME URBAN Maruyama

1-1, Nishi 22-Chome Kita 4-Jo, Chuo-ku, Sapporo-shi, Hokkaido

Real estate

262

PRIME URBAN Kita Nijuyo Jo

2-1 Higashi 1-Chome Kita 23-Jo, Higashi-ku, Sapporo-shi, Hokkaido

Real estate

480

PRIME URBAN Sapporo Idaimae

1-20 Nishi 13-Chome Minami 4-Jo, Chuo-ku, Sapporo-shi, Hokkaido

Real estate

681

PRIME URBAN Nagamachi Icchome

1-2-30 Nagamachi Icchome, Taihaku-ku, Sendai-shi, Miyagi

Real estate

1,120

PRIME URBAN Yaotome Chuo

3-8-70 Yaotome Chuo, Izumi-ku, Sendai-shi, Miyagi

Real estate

456

PRIME URBAN Aoi

1-13-24 Aoi, Higashi-ku, Nagoya-shi, Aichi

Beneficial
Interest

673

PRIME URBAN Kanayama

4-2-37 Masaki, Naka-ku, Nagoya-shi, Aichi

Real estate

637

PRIME URBAN Tsurumai

5-8-29 Chiyoda Naka-ku, Nagoya-shi, Aichi

Real estate

1,150

Beneficial
Interest
Beneficial
Interest

PRIME URBAN Esaka I

3-26-27 Tarumi-cho, Suita-shi, Osaka

PRIME URBAN Esaka II

3-31-31 Tarumi-cho, Suita-shi, Osaka

PRIME URBAN Esaka III

10-19 Hiroshiba-cho, Suita-shi, Osaka

Real estate

1,170

URBAN STAGE Sapporo Riverfront

1-1 Nishi 1-Chome Minami 9-Jo, Chuo-ku, Sapporo-shi, Hokkaido

Real estate

4,410

URBAN STAGE Kita Sanjo Dori

2-2 Higashi 2-Chome Kita 3-Jo, Chuo-ku, Sapporo-shi, Hokkaido (Note3)

Real estate

1,680

URBAN STAGE Tsutsumidori Amamiya

4-37 Tsutsumidori Amamiya-machi, Aoba-ku, Sendai-shi, Miyagi

Real estate

904

URBAN STAGE Kamimaezu

2-4-2 Kamimaezu Naka-ku, Nagoya-shi, Aichi

Real estate

1,560

URBAN STAGE Izumi

1-20-28 Izumi Higashi-ku, Nagoya-shi, Aichi

Real estate

3,670

URBAN STAGE Tamatsukuri

2-16-11 Tamatsukuri Chuo-ku, Osaka-shi, Osaka

Real estate

1,010

URBAN STAGE Sakaisuji Honmachi

1-5-10 Kyutaro-cho, Chuo-ku, Osaka-shi, Osaka

Real estate

1,780

Benefis Hakata Grand Suite

2-14-7 Minoshima, Hakata-ku, Fukuoka-shi, Fukuoka

Real estate584

Benefis Yakuin Minami

1-14-10 Shirogane, Chuo-ku, Fukuoka-shi, Fukuoka

Real estate259- 20 -

648
767

Area

Location(Postal Address)

Name of Property

Type ofOwnership(Note 1)

Appraisal Valueas of May 31,
2014 (¥ mln)
(Note 2)

Benefis Kashii Verbena

2-3-7 Kashii Ekimae Higashi-ku, Fukuoka-shi, Fukuoka

Real estate383

Benefis Hakata Higashi Grand Suite

6-4-23 Yoshizuka Hakata-ku, Fukuoka-shi, Fukuoka

Real estate604

Benefis Chihaya Grand Suite

4-11-20 Chihaya Higashi-ku, Fukuoka-shi, Fukuoka

Real estate

581

Other
Subtotal

31,477

Total

156,322

Note 1: “Beneficial interest” described in “Type of Ownership” refers to the beneficiary right of trusts whose major properties are real estate.
Note2: “Appraisal Value as of May 31, 2014” stands for the prices appraised by the estate surveyors in accordance with the provisions of the Company’s Articles of Incorporation andthe “Rules Concerning Calculations of Investment Corporations” (Cabinet Office Ordinance No. 47 of 2006). The appraisal prices are calculated by Daiwa Real EstateAppraisal, Co., Ltd., Chuo Real Estate Appraisal Co., Ltd., Japan Real Estate Institution, Tanizawa Sogo Appraisal Co., Ltd., Japan Valuers Co., Ltd., using the capitalization
approach, with the end of the 15th fiscal period, i.e. May 31, 2014, being taken as the point of evaluation.
Note 3: Residential indication of the property is not available yet.
Note 4: The “Type of Ownership” of the relevant properties is changed from “Beneficial interest” to “Real estate” along with the cancellation or expiration of the term of the trust.
Note 5: Property names were changed on May 20, 2014 for the following 31 properties.

New Name(After Change)
PRIME URBAN Azabu Juban
PRIME URBAN Shibaura LOFTPRIME URBAN Hatagaya
PRIME URBAN Kachidoki
PRIME URBAN Shinkawa
PRIME URBAN Nihonbashi Yokoyamacho
PRIME URBAN Hongo Ikizaka
PRIME URBAN Ochiai
PRIME URBAN Sangen JayaⅢ
PRIME URBAN Chitose Karasuyama
PRIME URBAN Karasuyama
PRIME URBAN Yoga
PRIME URBAN Oimachi
PRIME URBAN Oimachi II
PRIME URBAN Yukigaya
PRIME URBAN Takaido
PRIME URBAN Komagome
PRIME URBAN Mukojima
PRIME URBAN Kasai East
PRIME URBAN Ekoda
PRIME URBAN Itabashi Kuyakushomae
PRIME URBAN Asakusa
PRIME URBAN Machiya South Court
PRIME URBAN Musashi Koganei
PRIME URBAN Musashino Hills
PRIME URBAN Koganei Honcho
PRIME URBAN Kumegawa
PRIME URBAN Musashi Kosugi comodo
PRIME URBAN Tsurumi Teraya
PRIME URBAN Gyotoku EkimaeⅡ
PRIME URBAN GyotokuⅢ

Old Name(Before Change)
URBAN STAGE Azabu Juban
URBAN STAGE Shibaura LOFTURBAN STAGE Hatagaya
URBAN STAGE Kachidoki
URBAN STAGE Shinkawa
URBAN STAGE Nihonbashi Yokoyamacho
URBAN STAGE Hongo Ikizaka
URBAN STAGE Ochiai
URBAN STAGE Sangen Jaya
URBAN STAGE Chitose Karasuyama
URBAN STAGE Karasuyama
URBAN STAGE Yoga
URBAN STAGE Oimachi
URBAN STAGE Oimachi II
URBAN STAGE Yukigaya
URBAN STAGE Takaido
URBAN STAGE Komagome
URBAN STAGE Mukojima
URBAN STAGE Kasai East
URBAN STAGE Ekoda
URBAN STAGE Itabashi Kuyakushomae
URBAN STAGE Asakusa
URBAN STAGE Machiya South Court
URBAN STAGE Musashi Koganei
URBAN STAGE Musashino Hills
URBAN STAGE Koganei Honcho
URBAN STAGE Kumegawa
URBAN STAGE Musashi Kosugi comodo
URBAN STAGE Tsurumi Teraya
URBAN STAGE Gyotoku Ekimae
URBAN STAGE Gyotoku- 21 -

Area

GreaterTokyo
Area

Name of Property

15th Period (from Dec. 1, 2013 to May 31, 2014)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ 000)14th Period (from Jun. 1, 2013 to Nov. 30, 2013)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ 000)

PROUD FLAT Shirokane Takanawa

1

92.6

94,096

1.7

1

96.9

92,801

1.7

PROUD FLAT Yoyogi Uehara

1

100.0

30,969

0.6

1

100.0

30,342

0.6

PROUD FLAT Hatsudai

1

100.0

23,724

0.4

1

96.9

23,984

0.4

PROUD FLAT Shibuya Sakuragaoka

1

100.0

22,513

0.4

1

100.0

22,197

0.4

PROUD FLAT Gakugei Daigaku

1

97.1

24,537

0.4

1

100.0

25,625

0.5

PROUD FLAT Meguro Gyoninzaka

1

92.6

27,431

0.5

1

97.5

27,980

0.5

PROUD FLAT Sumida Riverside

1

98.6

73,460

1.3

1

99.3

73,964

1.4

PROUD FLAT Kagurazaka

1

100.0

47,614

0.9

1

100.0

47,7880.9

PROUD FLAT Waseda

1

96.9

35,716

0.6

1

98.5

35,120

0.7

PROUD FLAT Shinjuku Kawadacho

1

100.0

30,757

0.6

1

95.4

29,075

0.5

PROUD FLAT Sangen Jaya

1

88.3

35,164

0.6

1

100.0

36,353

0.7

PROUD FLAT Kamata

1

97.1

37,707

0.7

1

97.4

37,183

0.7

PROUD FLAT Kamata II

1

98.6

106,832

1.9

1

96.9

103,832

1.9

PROUD FLAT Shinotsuka

1

97.2

19,726

0.4

1

94.4

19,995

0.4

PROUD FLAT Kiyosumi Shirakawa

1

100.0

30,746

0.6

1

100.0

30,684

0.6

PROUD FLAT Monzen Nakacho II

1

89.5

21,544

0.4

1

94.8

20,282

0.4

PROUD FLAT Monzen Nakacho I

1

100.0

33,847

0.6

1

100.0

33,152

0.6

PROUD FLAT Fujimidai

1

100.0

56,219

1.0

1

100.0

56,092

1.0

PROUD FLAT Asakusa Komagata

1

96.7

64,809

1.2

1

97.1

63,819

1.2

PROUD FLAT Yokohama

1

95.9

72,884

1.3

1

97.2

69,671

1.3

PROUD FLAT Kamioooka

1

87.5

79,234

1.4

1

100.0

97,332

1.8

PROUD FLAT Tsurumi II

1

100.0

64,395

1.2

1

98.1

62,267

1.2

PRIME URBAN Azabu Juban

1

89.9

31,928

0.6

1

97.5

32,5680.6

PRIME URBAN Akasaka

1

96.6

26,625

0.5

1

100.0

26,3090.5

PRIME URBAN Tamachi

1

90.0

29,988

0.5

1

100.0

30,972

0.6

PRIME URBAN Shibaura LOFT

1

95.9

54,742

1.0

1

93.9

58,145

1.1

PRIME URBAN Hatagaya

1

100.0

16,110

0.3

1

100.0

15,533

0.3

PRIME URBAN Yoyogi

1

100.0

10,532

0.2

1

88.6

11,1300.2

PRIME URBAN Bancho

1

94.4

32,499

0.6

1

96.1

30,954

0.6

PRIME URBAN Chiyoda Fujimi

1

90.8

20,765

0.4

1

97.2

20,9070.4

PRIME URBAN Iidabashi

1

95.7

63,715

1.1

1

94.7

61,498

1.1

PRIME URBAN Ebisu

1

86.8

37,210

0.7

1

94.0

37,586

0.7

PRIME URBAN Naka Meguro

1

93.9

40,495

0.7

1

95.9

40,456

0.8

PRIME URBAN Gakugei Daigaku

1

90.8

25,068

0.5

1

100.0

24,2100.5

PRIME URBAN Senzoku

1

91.5

15,498

0.3

1

84.2

13,921

0.3

PRIME URBAN Meguro Riverside

1

91.5

14,240

0.3

1

100.0

14,0990.3

PRIME URBAN Meguro Ohashi Hills

1

95.6

84,218

1.5

1

100.0

85,495

1.6

PRIME URBAN Kachidoki

1

91.6

90,293

1.6

1

96.0

90,123

1.7

PRIME URBAN Shinkawa

1

93.0

71,357

1.3

1

89.0

71,763

1.3

PRIME URBAN Nihonbashi Yokoyamacho

1

99.5

126,578

2.3

1

92.7

116,513

2.2

PRIME URBAN Hongo Ikizaka

1

92.6

18,138

0.3

1

100.0

17,796

0.3

PRIME URBAN Hakusan

1

96.4

26,082

0.5

1

96.4

25,9520.5

PRIME URBAN Yotsuya Gaien Higashi

1

89.8

46,362

0.8

1

98.0

45,376

0.8

PRIME URBAN Ochiai

1

93.7

13,155

0.2

1

90.9

13,0400.2

PRIME URBAN Nishi Shinjuku I

1

92.2

37,034

0.7

1

98.4

37,9430.7

PRIME URBAN Nishi Shinjuku II

1

95.9

28,225

0.5

1

100.0

28,5180.5

PRIME URBAN Shinjuku Naitomachi

1

100.0

13,767

0.2

1

100.0

13,8670.3

PRIME URBAN Nishi Waseda

1

3.5

12,500

0.2

1

100.0

15,4080.3

PRIME URBAN Sangen JayaⅢ

1

96.6

25,414

0.5

1

96.5

25,804

0.5

PRIME URBAN Chitose Karasuyama

1

89.1

26,855

0.5

1

96.2

26,8990.5

PRIME URBAN Karasuyama

1

96.3

12,594

0.2

1

92.7

12,5930.2

PRIME URBAN Sangen Jaya

1

100.0

23,444

0.4

1

94.2

21,516

0.4

PRIME URBAN Minami Karasuyama

1

95.2

24,934

0.4

1

87.7

22,9570.4

PRIME URBAN Karasuyama Galleria

1

97.0

18,989

0.3

1

93.9

18,713

0.3

PRIME URBAN Karasuyama Court

1

100.0

12,407

0.2

1

100.0

11,6850.2

PRIME URBAN Chitose Funabashi

1

97.3

23,577

0.4

1

90.1

24,4280.5- 22 -

Area

Name of Property

15th Period (from Dec. 1, 2013 to May 31, 2014)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ 000)14th Period (from Jun. 1, 2013 to Nov. 30, 2013)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ 000)PRIME URBAN Yoga

1

100.0

43,429

0.8

1

98.5

42,0090.8

PRIME URBAN Shinagawa Nishi

1

95.9

21,531

0.4

1

93.8

21,3320.4

PRIME URBAN Oimachi

1

97.8

19,329

0.3

1

91.1

19,6020.4

PRIME URBAN Osaki

1

98.0

58,513

1.1

1

97.0

57,495

1.1

PRIME URBAN Oimachi II

1

96.2

49,954

0.9

1

100.0

47,2570.9

PRIME URBAN Yukigaya

1

100.0

38,679

0.7

1

100.0

36,5480.7

PRIME URBAN Omori

1

100.0

30,281

0.5

1

98.1

30,265

0.6

PRIME URBAN Kita Senzoku (Note 2)

－

－

－

－

－

－

2,640

0.0

PRIME URBAN Denenchofu Minami

1

95.5

24,798

0.4

1

96.0

24,531

0.5

PRIME URBAN Nakano Kamitakada

1

100.0

20,333

0.4

1

96.1

18,6950.3

PRIME URBAN Takaido

1

95.4

40,029

0.7

1

92.6

39,9030.7

PRIME URBAN Nishi Ogikubo

1

96.1

13,806

0.2

1

100.0

13,1900.2

PRIME URBAN Otsuka

1

97.9

23,413

0.4

1

90.4

22,956

0.4

PRIME URBAN Komagome

1

95.0

18,389

0.3

1

100.0

17,2370.3

PRIME URBAN Monzen Nakacho

1

99.2

77,357

1.4

1

95.8

74,784

1.4

PRIME URBAN Kameido

1

94.3

25,038

0.5

1

100.0

25,114

0.5

PRIME URBAN Sumiyoshi

1

100.0

20,072

0.4

1

100.0

19,4470.4

PRIME URBAN Mukojima

1

100.0

21,707

0.4

1

98.1

21,164

0.4

PRIME URBAN Kinshi Koen

1

98.7

41,610

0.7

1

97.4

41,9100.8

PRIME URBAN Kinshicho

1

100.0

23,965

0.4

1

100.0

24,1100.5

PRIME URBAN Hirai

1

100.0

24,551

0.4

1

98.1

23,3730.4

PRIME URBAN Kasai

1

97.8

21,765

0.4

1

97.8

21,2680.4

PRIME URBAN Kasai II

1

100.0

32,753

0.6

1

89.7

30,086

0.6

PRIME URBAN Kasai East

1

100.0

36,679

0.7

1

100.0

36,631

0.7

PRIME URBAN Ekoda

1

97.4

15,438

0.3

1

100.0

15,113

0.3

PRIME URBAN Itabashi Kuyakushomae

1

91.2

36,003

0.6

1

92.7

36,5600.7

PRIME URBAN Asakusa

1

100.0

15,636

0.3

1

100.0

15,664

0.3

Greater

PRIME URBAN Machiya South Court

1

97.6

70,315

1.3

1

97.6

71,143

1.3

Tokyo

PRIME URBAN Musashi Koganei

1

93.9

74,159

1.3

1

98.0

73,834

1.4

Area

PRIME URBAN Musashino Hills

1

93.3

49,376

0.9

1

91.5

47,4880.9

PRIME URBAN Koganei Honcho

1

97.4

28,107

0.5

1

95.0

28,675

0.5

PRIME URBAN Kumegawa

1

97.4

57,659

1.0

1

98.5

57,885

1.1

PRIME URBAN Musashi Kosugi comodo

1

100.0

74,152

1.3

1

96.8

71,063

1.3

PRIME URBAN Shinyurigaoka

1

100.0

37,974

0.7

1

100.0

37,504

0.7

PRIME URBAN Tsurumi Teraya

1

100.0

20,578

0.4

1

98.0

20,366

0.4

PRIME URBAN Urayasu

1

93.3

27,028

0.5

1

96.7

27,3200.5

PRIME URBAN Gyotoku I

1

96.2

23,601

0.4

1

94.2

22,7180.4

PRIME URBAN Gyotoku II

1

100.0

28,213

0.5

1

100.0

24,2680.5

PRIME URBAN Gyotoku Ekimae

1

97.3

16,618

0.3

1

91.9

16,4880.3

PRIME URBAN Gyotoku EkimaeⅡ

1

97.8

21,662

0.4

1

91.3

19,7680.4

PRIME URBAN GyotokuⅢ

1

98.7

31,943

0.6

1

93.5

32,321

0.6

PRIME URBAN Nishi Funabashi

1

98.3

25,984

0.5

1

96.7

25,4170.5

PRIME URBAN Kawaguchi

1

86.9

52,891

1.0

1

89.3

64,817

1.2

URBAN STAGE Ebisu (Note 3)

1

93.7

33,583

0.6

1

94.9

15,852

0.3

URBAN STAGE Meguro Aobadai (Note 3)

1

100.0

37,484

0.7

1

85.7

16,3480.3

URBAN STAGE Gakugei Daigaku (Note 3)
URBAN STAGE Nihonbashi Hamacho(Note 3)URBAN STAGE Naka Ochiai

1

98.2

27,694

0.5

1

85.9

12,623

0.2

1

94.9

47,027

0.8

1

97.6

23,286

0.4

1

100.0

21,833

0.4

1

94.0

23,331

0.4

URBAN STAGE Shinjuku Ochiai

1

91.8

21,409

0.4

1

89.2

19,447

0.4

URBAN STAGE Mejiro

1

95.6

41,595

0.7

1

85.1

40,4350.8

URBAN STAGE Kagurazaka (Note 3)

1

99.3

80,809

1.5

1

93.6

34,775

0.6

URBAN STAGE Roka Koen

1

91.3

11,858

0.2

1

94.2

12,7280.2

URBAN STAGE Kamiuma

1

95.5

32,934

0.6

1

100.0

33,352

0.6

URBAN STAGE Sangen Jaya II

1

91.2

17,611

0.3

1

100.0

17,4380.3

URBAN STAGE Komazawa

1

100.0

12,408

0.2

1

88.8

12,4770.2

URBAN STAGE Kamikitazawa

1

96.3

20,643

0.4

1

86.2

20,305

0.4

URBAN STAGE Ikegami (Note 4)－－

38,869

0.7

1

95.4

48,7980.9- 23 -

Area

Name of Property

15th Period (from Dec. 1, 2013 to May 31, 2014)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ 000)14th Period (from Jun. 1, 2013 to Nov. 30, 2013)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ 000)URBAN STAGE Nakano

1

96.2

19,032

0.3

1

90.8

18,7300.3

URBAN STAGE Ikebukuro (Note 3)

1

93.0

107,947

1.9

1

93.4

52,8191.0

URBAN STAGE Takinokawa (Note 5)

－

－

－

－

－

－

6,737

0.1

URBAN STAGE Machiya (Note 6)

－

－

9,126

0.2

1

95.9

9,324

0.2

URBAN STAGE Koganei (Note 7)

－

－

－

－

－

－

9,238

0.2

Greater

URBAN STAGE Hino

1

85.2

14,697

0.3

1

92.6

14,4300.3

Tokyo

URBAN STAGE Kawasaki

1

100.0

38,303

0.7

1

97.8

37,3490.7

Area

URBAN STAGE Urayasu

1

96.3

9,282

0.2

1

96.3

9,186

0.2

URBAN STAGE Minami Gyotoku II

1

94.6

11,479

0.2

1

78.4

8,468

0.2

URBAN STAGE Minami Gyotoku III

1

93.9

12,441

0.2

1

93.9

12,094

0.2

URBAN STAGE Minami Gyotoku IV
URBAN STAGE Minami Gyotoku V(Note 8)

1

90.4

11,090

0.2

1

84.6

10,720

0.2

－

－

－

－

－

－

12,6750.2

Subtotal
PROUD FLAT Itsutsubashi

119

95.7

4,303,787

77.5

121

95.9

4,137,201

77.2

1

97.8

29,918

0.5

1

100.0

30,2090.6

PROUD FLAT Kawaramachi

1

96.1

30,134

0.5

1

100.0

29,7290.6

PROUD FLAT Shin Osaka

1

96.6

62,268

1.1

1

95.7

59,307

1.1

PRIME URBAN Yamahana

1

96.5

12,991

0.2

1

97.4

13,1600.2

PRIME URBAN Kita Juyo Jo

1

93.6

13,415

0.2

1

96.8

13,3630.2

PRIME URBAN Odori Koen I

1

100.0

17,142

0.3

1

100.0

17,163

0.3

PRIME URBAN Odori Koen II

1

100.0

11,134

0.2

1

100.0

11,1390.2

PRIME URBAN Kita Juichi Jo

1

100.0

25,511

0.5

1

96.7

24,6690.5

PRIME URBAN Miyanosawa

1

98.4

23,908

0.4

1

95.7

22,6950.4

PRIME URBAN Odori Higashi

1

100.0

18,372

0.3

1

94.4

18,8420.4

PRIME URBAN Chiji Koukan

1

100.0

13,594

0.2

1

97.6

13,3180.2

PRIME URBAN Maruyama

1

100.0

11,334

0.2

1

92.6

11,582

0.2

PRIME URBAN Kita Nijuyo Jo

1

91.6

20,548

0.4

1

97.2

20,6820.4

PRIME URBAN Sapporo Idaimae

1

93.5

27,730

0.5

1

92.1

27,8200.5

PRIME URBAN Nagamachi Icchome

1

94.4

42,231

0.8

1

100.0

42,4420.8

PRIME URBAN Yaotome Chuo

1

97.8

19,410

0.3

1

100.0

19,006

0.4

PRIME URBAN Aoi

1

88.5

25,101

0.5

1

100.0

26,0420.5

PRIME URBAN Kanayama

1

96.5

22,730

0.4

1

93.1

23,2550.4

PRIME URBAN Tsurumai

1

93.3

41,509

0.7

1

90.4

42,0550.8

PRIME URBAN Esaka I

1

85.5

22,578

0.4

1

97.9

23,466

0.4

PRIME URBAN Esaka II

1

98.3

27,737

0.5

1

91.4

26,2180.5

PRIME URBAN Esaka III

1

91.5

40,352

0.7

1

93.8

40,8950.8

URBAN STAGE Sapporo Riverfront

1

96.4

188,414

3.4

1

96.0

185,883

3.5

URBAN STAGE Kita 3 Jo Dori

1

100.0

69,341

1.2

1

100.0

68,266

1.3

URBAN STAGE Tsutsumidori Amamiya

1

96.8

45,128

0.8

1

100.0

45,006

0.8

URBAN STAGE Kamimaezu

1

100.0

56,759

1.0

1

100.0

56,067

1.0

URBAN STAGE Izumi

1

95.9

133,563

2.4

1

99.2

134,709

2.5

URBAN STAGE Tamatsukuri
URBAN STAGE Sakaisuji Honmachi(Note 3)
Benefis Hakata Grand Suite

1

95.4

35,532

0.6

1

96.2

35,883

0.7

1

90.7

58,970

1.1

1

88.3

28,251

0.5

1

96.2

28,131

0.5

1

96.9

29,0820.5

Benefis Yakuin Minami

1

100.0

13,121

0.2

1

94.5

12,7520.2

Benefis Kashii Verbena

1

92.3

15,512

0.3

1

89.3

16,6580.3

Benefis Hakata Higashi Grand Suite

1

97.4

26,270

0.5

1

98.7

26,3540.5

Benefis Chihaya Grand Suite

1

94.0

22,453

0.4

1

93.9

22,9990.4

Subtotal

34

96.1

1,252,861

22.5

34

96.6

1,218,983

22.8

Total

153

95.8

5,556,649

100.0

155

96.2

5,356,185

100.0

Other

Note 1: In the case that a part of or all rental units in individual properties are placed on the rental market, and the tenant of the relevant Lease Agreement (Master Lease
Agreement) has entered into an agreement on subleasing the relevant rental unit with the end-tenant (actual sublessee), we deem the lesser of the relevant Master Lease
Agreement as one (1). In the case that a specific tenant rents multiple units in a specific property, we deem the tenant of the relevant property as one (1). If a tenant rents
units in multiple properties, we show the number of the properties rented by the relevant tenant as the number of tenants.
Note 2: The relevant properties were sold on June 27, 2013. The figure shown in the “rental revenues during the 14th fiscal period” column is before the date of selling.
Note 3: The relevant properties were acquired on September 3, 2013. The figure shown in the “rental revenues during the 14th fiscal period” column is after the date of acquisition.
Note 4: The relevant properties were sold on April 24, 2014. The figure shown in the “rental revenues during the 15th fiscal period” column is before the date of selling.
Note 5: The relevant properties were sold on September 20, 2013. The figure shown in the “rental revenues during the 14th fiscal period” column is before the date of selling.
Note 6: The relevant properties were sold on May 29, 2014. The figure shown in the “rental revenues during the 15th fiscal period” column is before the date of selling.
Note 7: The relevant properties were sold on November 22, 2013. The figure shown in the “rental revenues during the 14th fiscal period” column is before the date of selling.
Note 8: The relevant properties were sold on November 27, 2013. The figure shown in the “rental revenues during the 14th fiscal period” column is before the date of selling.

- 24 -

4. OUTSTANDING AMOUNT AND CURRENT PRICE OF SPECIFIED TRANSACTIONS
The outstanding amount and current price of the specified transactions as of May 31, 2014 are as follows.
Segment
Transaction other than market transaction

Contract Amount(¥ mln) (Note 1)
Longer than a Year

Type of Transaction
Interest-rate swap
(Receiving floating-rate, paying fixed-rate)
Total

Current Price(¥ mln) (Note 2)

56,02046,220△352

56,02046,220△352

Note 1: Presented based on notional principal of contract.
Note 2: Evaluated at the price provided by the counterparty based on the prevailing market rate.

5. STATUS OF THE OTHER ASSETS
Other than the Trust Beneficial Interest and Real Estate listed in the table under the title “3. Details of Portfolio Properties”,
the Company had no other assets to integrate into the portfolio as of May 31, 2014.

6. STATUS OF ASSETS BY COUNTRY AND REGIONThe Company had no assets in countries or regions outside Japan.

- 25 -

Capital Expenditures
1. PLAN OF CAPITAL EXPENDITURES
The table below lists major capital expenditures in conjunction with the refurbishment and/or renewal works scheduled forthe future (finished in part) on the properties held as of May 31, 2014. The estimated cost of works includes the amount to be
charged as “expenses” for accounting purposes.
Name of Property (Location)

Description of Works (Purpose)

Estimated Period

Total

Estimated Cost (¥000)
Paid during
Paid before
15th Period
15th Period

PRIME URBAN Takaido(Suginami-ku, Tokyo)

Water receiving tank replacement

From
To

: Oct. 2014
: Nov. 2014

3,000

-

-

PRIME URBAN Monzen Nakacho(Koto-ku, Tokyo)

Mechanical parking parts replacement

From
To

: Oct. 2014
: Nov. 2014

6,500

-

-

PRIME URBAN Musashi Koganei(Koganei-shi, Tokyo)

Entrance renewal

From
To

: Jun. 2014
: Aug. 2014

19,200--URBAN STAGE Shinjuku Ochiai(Shinjuku-ku, Tokyo)

Major repair

From
To

: Sep. 2013
: Nov. 2013

22,890--URBAN STAGE Tsutsumidori Amamiya(Sendai-shi, Miyagi)

Intercom replacement

From
To

: Oct. 2013
: Nov. 2013

5,500

-

-

URBAN STAGE Tsutsumidori Amamiya(Sendai-shi, Miyagi)

Mechanical parking renovation

From
To

: Oct. 2014
: Nov. 2014

2,700

-

-

2. CAPITAL EXPENDITURES DURING THE 15TH FISCAL PERIOD
The table below lists capital expenditures during the 15th fiscal period in conjunction with the major works of renovation.
During the period, we have conducted engineering works totaling ¥396,067 thousand: capital expenditures of ¥95,742
thousand and repair expenses of ¥300,325 thousand combined all together.
Name of Property (Location)

Description of Works (Purpose)

Period of Works

Cost of Works (¥000)

PRIME URBAN Kachidoki(Chuo-ku, Tokyo)

Housing equipment renewal

From : May. 2014
To
: May. 2014

13,179PRIME URBAN Sangen JayaⅢ(Setagaya-ku, Tokyo)

Housing equipment renewal

From : May. 2014
To
: May. 2014

3,372

PRIME URBAN Yukigaya(Ota-ku, Tokyo)

Housing equipment renewal

From : May. 2014
To
: May. 2014

3,558

URBAN STAGE Gakugei Daigaku(Meguro-ku, Tokyo)

Exclusive area renovation

From : Jan. 2014To
: Jan. 2014

1,909

Other Properties

Housing equipment renewal

From : Dec. 2013To
: May 2014

73,722

Total

95,742

3. FUNDS RESERVED FOR THE LONG-TERM REPAIR PLANS
Subject to the long-term schedule for repairs and maintenance set down for each building, the Company has accounted forreserves from the operating cash flow to prepare for large-scale engineering works to be carried out in the future.

Balance brought forward from theprevious period
Amount reserved during the period
Amount used during the period
Balance brought forward to the next
period15th Period
from Dec. 1, 2013
to May 31, 2014

14th Period
from Jun. 1, 2013
to Nov. 30, 2013

13th Period
from Dec. 1, 2012
to May 31, 2013

12th Period
from Jun. 1, 2012
to Nov. 30, 2012

11th Period
from Dec. 1, 2011
to May 31, 2012(¥ mln)

1,745

1,651

1,548

1,385

1,253

(¥ mln)(¥ mln)

180
96

175
81

176
73

176
12

168
36

(¥ mln)

1,829

1,745

1,651

1,548

1,385

- 26 -

Expenses and Liabilities
1. EXPENSES RELATED TO ASSET MANAGEMENT
14th Period
From Jun. 1, 2013
to Nov. 30, 2013

15th Period
From Dec. 1, 2013
to May 31, 2014
Asset management fees (Note 1)of which Management Fee I
of which Management Fee IIof which Management Fee III (Note 2)
Custodian fees
General administrative fees
Directors’ compensation
Other expenses
Total

383,288
195,900
187,387－
14,95023,5114,800
171,935
598,486

399,676
209,449
190,227－
15,951
24,071
4,800
182,300
626,800(¥000)(¥000)(¥000)－(¥000)(¥000)(¥000)(¥000)(¥000)

Note 1: In addition to the items shown above, asset management fees related to the acquisition of properties calculated in the book value of individual pieces of real estate, etc. were
123,360 thousand yen for the 14th period.
Note 2: If the total assets listed on the balance sheet as of the date of settlement during the fiscal period immediately before the relevant fiscal period is less than 300 billion yen,management fee III for the relevant fiscal period is not applied.

2. STATUS OF BORROWINGSThe status of borrowings from the financial institutions as of May31, 2014 is as follows.
Current Portion of Long-term debt
Outstanding
as of May31, 2014(¥000)

Outstanding
as of Dec. 1,
2013 (¥000)-

1,000,000-

1,000,000-

2,000,000-

500,000-

500,000

The Nomura Trust and Banking Co., Ltd.

-

700,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

500,000

Sumitomo Mitsui Banking Corporation-

500,000

Financial Institutions

Date Borrowed

Mitsubishi UFJ Trust and Banking
Corporation

Feb. 27, 2007

The Nomura Trust and Banking Co., Ltd.
Taiyo Life Insurance Company

Feb. 27, 2007

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation

Mitsubishi UFJ Trust and Banking
Corporation

Aug. 26, 2011-

500,000

Sumitomo Mitsui Trust Bank, Limited-

500,000

The Nomura Trust and Banking Co., Ltd.

-

1,000,000

Sep. 30, 2011

Mizuho Bank, Ltd.

-

500,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500,000

500,000

Sumitomo Mitsui Banking Corporation

500,000

500,000

Mitsubishi UFJ Trust and Banking
Corporation

400,000

400,000

Sumitomo Mitsui Trust Bank, Limited

700,000

700,000

Mizuho Bank, Ltd.

320,000

320,000

Aug. 27, 2012

The Chiba Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Mitsui Sumitomo Insurance Co., Ltd.

Sep. 5, 2011

Mizuho Bank, Ltd.

750,000

750,000

1,400,000

1,400,000

1,000,000

1,000,000

1,000,000

1,000,000

Average
Interest
Rate (%)(Note 1)

Date of
Repayment

2.14360

Feb. 27,2014

2.13625

Feb. 27,
2014

0.78591

Feb. 27,
2014

0.78591

Feb. 27,2014

0.71000

Aug. 27,2014

0.94700

Sep. 5,2014

The Bank of Fukuoka, Ltd.

Feb. 26, 2010

1,000,000-

1.79200

Development Bank of Japan, Inc.

May 15, 2007

1,300,000-

2.23500

The Nomura Trust and Banking Co., Ltd.

1,000,000-

The Iyo Bank, Ltd.

1,000,000-

1,900,000-

Mizuho Trust & Banking Co., Ltd.

1,000,000-

The Tokyo Tomin Bank, Limited

500,000-

Resona Bank, Ltd.

Feb. 27, 2012

- 27 -

0.96365

Feb. 26,
2015
Feb. 27,
2015

Feb. 27,
2015

Method of
Repayment

Use ofBorrowings

Note

Balloonpayment(Note 4)

Unsecured/
UninsuredFinancial Institutions

Date Borrowed

Outstanding
as of May31, 2014(¥000)

Outstanding
as of Dec. 1,
2013 (¥000)

Average
Interest
Rate (%)(Note 1)

Date of
Repayment

Method of
Repayment

Development Bank of Japan, Inc.

Aug. 27, 2009

80,00080,0002.10000(Note 2)

(Note 2)Development Bank of Japan, Inc.

Feb. 26, 2010

100,000

100,000

2.03000(Note 3)(Note 3)

14,450,000

15,950,000

Subtotal- 28 -

Use ofBorrowings(Note 4)

Note

Unsecured/
UninsuredLong-term debt

Date Borrowed

Outstanding
as of May 31,
2014 (¥000)

Outstanding
as of Dec. 1,
2013 (¥000)

Average
Interest
Rate (%)(Note 1)The Bank of Fukuoka, Ltd.

Feb. 26, 2010-

1,000,000

1.79200

Development Bank of Japan, Inc.

May 15, 2007-

1,300,000

2.23500

The Nomura Trust and Banking Co., Ltd.

-

1,000,000

The Iyo Bank, Ltd.

-

1,000,000-

1,900,000

Mizuho Trust & Banking Co., Ltd.

-

1,000,000

The Tokyo Tomin Bank, Limited-

500,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,800,000

1,800,000

Sumitomo Mitsui Banking Corporation

1,800,000

1,800,000

2,500,000

2,500,000

Mitsubishi UFJ Trust and Banking
Corporation

1,800,000

1,800,000

Sumitomo Mitsui Trust Bank, Limited

1,800,000

1,800,000

4,700,000

4,700,000

4,700,000

4,700,000

4,700,000

4,700,000

500,000

500,000

800,000

800,000

500,000

500,000

1,100,000

1,100,000

1,100,000

1,100,000

Shinkin Central Bank

1,720,000

1,720,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,300,000

1,300,000

Sumitomo Mitsui Banking Corporation

1,300,000

1,300,000

900,000

900,000

Sumitomo Mitsui Trust Bank, Limited

520,000

520,000

Mizuho Bank, Ltd.

900,000

900,000

Aozora Bank, Ltd.

500,000

500,000

1,800,000

1,800,000

1,800,000

1,800,000

1,800,000

1,800,000

400,000

400,000

400,000

400,000

Financial Institutions

Resona Bank, Ltd.

Mizuho Bank, Ltd.

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Feb. 27, 2012

Feb. 27, 2012

Dec. 26, 2011

Sumitomo Mitsui Banking Corporation
Mitsubishi UFJ Trust and Banking
Corporation

Dec. 26, 2011

Resona Bank, Ltd.
Shinkin Central Bank

Oct. 25, 2013

Aozora Bank, Ltd.
Mitsui Sumitomo Insurance Co., Ltd.
Daido Life Insurance Company

Mitsubishi UFJ Trust and Banking
Corporation

Aug. 27, 2012

Aug. 27, 2012

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation

Sep. 30, 2013

Mitsubishi UFJ Trust and Banking
Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
Dec. 3, 2012
Mizuho Bank, Ltd.

400,000

400,000

Mitsubishi UFJ Trust and Banking
Corporation

400,000

400,000

Feb. 27,2015

1.00900

Aug. 27,2015

1.00000

Dec. 26,2015

1.11700

Jun. 26,2016

0.69000

Feb. 26,2017

1.08500

Aug. 27,2017

1.12013

Feb. 27,2018

0.99000

Aug. 26,2018

1.16500

Nov. 26,2019

May 23, 2013

1,000,000

1,000,000

1.48625

The Dai-Ichi Life Insurance Company,
Limited

Sep. 30, 2013

800,000

800,000

1.28277

Method of
Repayment

Use ofBorrowings

Note

Balloonpayment(Note 4)

Unsecured/
UninsuredFeb. 26,
2015
Feb. 27,2015

0.96365

Taiyo Life Insurance Company- 29 -

Date of
Repayment

May 27,2020
Aug. 26,2020

Outstanding
as of May 31,
2014 (¥000)

Outstanding
as of Dec. 1,
2013 (¥000)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000

1,000,000

Sumitomo Mitsui Banking Corporation

1,000,000

1,000,000

1,000,000

1,000,000

Sumitomo Mitsui Trust Bank, Limited

600,000

600,000

Mizuho Bank, Ltd.

600,000

600,000

Mizuho Trust & Banking Co., Ltd.

500,000

500,000

Financial Institutions

Mitsubishi UFJ Trust and Banking
Corporation

Date Borrowed

Oct. 25, 2013

Average
Interest
Rate (%)(Note 1)

Date of
Repayment

1.18000

Aug. 26,
2020

Nippon Life Insurance Company

Oct. 25, 2013

500,000

500,000

1.15566

Taiyo Life Insurance Company

Feb. 27, 2014

2,000,000-

1.17750

Mizuho Bank, Ltd.

May 23, 2013

1,000,000

1,000,000

1.68200

Development Bank of Japan, Inc.

May 23, 2013

3,500,000

3,500,000

1.62500

The Nomura Trust and Banking Co., Ltd.

Feb 27, 2014

2,700,000-

1.24100

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000-

Sumitomo Mitsui Banking Corporation

1,000,000-

1,500,000-

Sumitomo Mitsui Trust Bank, Limited

500,000-

Mizuho Bank, Ltd.

500,000-

Mitsubishi UFJ Trust and Banking
Corporation

Feb 27, 2014

Aug. 26,2020
Feb. 26,2021
May 27,2021
May 27,2021
Aug. 26,2021

1.31850

Feb. 26,
2022

Method of
Repayment

Use ofBorrowings

Note

Balloonpayment(Note 4)

Unsecured/
Uninsured

Development Bank of Japan, Inc.

Aug. 27, 2009

1,160,000

1,200,000

2.10000(Note 2)

(Note 2)Development Bank of Japan, Inc.

Feb. 26, 2010

1,500,000

1,550,000

2.03000(Note 3)(Note 3)

Subtotal

65,300,000

63,890,000

Total

79,750,000

79,840,000

Note 1：The average interest rate is weighted by the balance of each borrowing as at the end of the period and rounded to the nearest fifth decimal place. As for the borrowings, whichwere hedged by interest-rate swaps for the purpose of avoiding interest rate fluctuation risk, the swapped interest rates are used to calculate the weighted average of interest.
Note 2：Instalments of ¥40 million will be made on the 27th day of every 6th month starting on February 27, 2010, with the remaining payment of ¥1,080 million to be repaid on
August 27, 2016.
Note 3：Instalments of ¥50 million will be made on the 26th day of every 6th month starting on August 26, 2010, with the remaining payment of ¥1,350 million to be repaid on
February 26, 2017.
Note 4：The use of borrowings is to purchase property-related assets, the related miscellaneous expenses and the repayment of borrowings.

3. STATUS OF INVESTMENT CORPORATION BONDS
The status of investment corporation bonds issued as of May 31, 2014 is as follows.
Name of Bonds

Issue Date

Balance as of
May 31, 2014(¥ mln)Balance as of
Nov. 30, 2013(¥ mln)First Series Unsecured Investment
Feb. 25, 2011
5,000
Corporation Bonds
Second Series Unsecured Investment
Feb. 24, 2012
5,000
Corporation Bonds
Total
10,000Note 1: The uses of proceeds are to repay borrowings.
Note 2: Ranking Pari Passu among the specified investment corporation bonds.

Interest
Rate
(%)

5,000

1.21

Feb. 25, 2016

5,000

1.03

Feb. 24, 2017

10,000

4. STATUS OF SHORT-TERM INVESTMENT CORPORATION BONDS
Not applicable.

- 30 -

Maturity Date

Method of
Repayment

Use ofProceeds

Note

Balloonpayment(Note 1)

(Note 2)

Trading during the 15th Fiscal Period
1. STATUS OF REAL ESTATES AND ASSET-BACKED SECURITIES TRADING
Acquisition
Type of Asset

Name of Property

Date

Transfer

Price (¥000)

Price (¥000)

Date(Note 1)

Gain
(Loss)(¥000)

Book
Value(¥000)(Note 2)Trust
Beneficial Interest

URBAN STAGE Ikegami－－

Apr. 24, 2014

1,445,160

1,392,442

25,156

Real Estate

URBAN STAGE Machiya－－

May 29, 2014

230,000

211,195

12,207

1,675,160

1,603,637

37,364－

Total

Note 1: “Transfer Price” do not include various costs (intermediary fees, taxes and duties, etc.) required for transfer of the property (the purchase and sale price of the real estate, etc.,
as indicated in the Transfer Agreement of Trust Beneficial Interest or Real Estate).
Note 2: For transfer, other sales expenses in addition to the above have been incurred, and “Gain (Loss)” is inclusive of this amount.

2. STATUS OF OTHER ASSETS
Not applicable. In addition, the Company’s assets other than the above mentioned properties and asset-backed securities, aremostly comprised of direct bank deposits and bank deposits in trust.

3. PRICE INVESTIGATION(1) Real Estates
Acquisition/Transfer
Acquisition/Transfer

Type of Asset

Name of Property
Date

Trust
Beneficial Interest
Real EstateTransfer
Transfer

Price (¥000)

Appraisal Value(¥000)(Note 1)URBAN STAGE Ikegami

Apr. 24, 2014

1,445,160

1,270,000

URBAN STAGE Machiya

May 29, 2014

230,000

186,000

Note 1: “Transfer Price” do not include various costs (intermediary fees, taxes and duties, etc.) required for transfer of the property (the purchase and sale price of the real estate, etc.,
as indicated in the Transfer Agreement of Trust Beneficial Interest or Real Estate).

(2) Others
With regard to the properties the Company has traded but not included in the above table “(1) Real Estate,” the price investigation
procedures were conducted by Akira Sugai C.P.A. Office subject to the requirement by Article 201 of the Investment Trust Act.
For the 15th fiscal period (from December 1, 2013 to May 31, 2014), three interest-rate swap transactions were subject to investigation.
Akira Sugai C.P.A. Office was requested to investigate the details of the relevant transaction including the name of counterparty, agreed
figures, type of financial product or index, the trading period, and the contents of the relevant derivatives transactions. The investigation
report has been received.

4. TRANSACTIONS WITH RELATED PARTIES(1) Transactions
Not applicable.
(2) Fees Paid to Related Parties
Table of fees paid to related parties during the 15th fiscal period is as follows.
Item
Real estate, etc. intermediary fees

Amount Paid (A)(¥000)Name of Related Party
Nomura Real Estate Development Co., Ltd.

37,180Total Amount Paid
(B)(¥000)
30,2206,960
160,868
251,061
1,492
600

Portion(A) / (B)
(%)
81.3%

18.7%
Nomura Real Estate Urban Net Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
Contract-out fees
207,133
77.7%
Property management fees
Nomura Real Estate Partners Co., Ltd.
314,215
79.9%
Commission
Nomura Real Estate Partners Co., Ltd.
121,186
1.2%
Advertising
Nomura Real Estate Urban Net Co., Ltd.
1,386
43.3%
Note: The term “related parties” refers to related parties of Asset Management Companies as stipulated by Article 123 of the Enforcement Order of the Act on Investment Trusts andInvestment Corporations and by Article 26, Paragraph 1, Item 27 of the Regulations Concerning Investment Reports of Investment Trusts and Investment Corporations, issued- 31 -

by the Investment Trusts Association, Japan.

In addition, the following are the property management fees paid to related party Nomura Real Estate Partners Co., Ltd.
shown as a breakdown by property.
Property Name

Property Management Fees(¥000)PROUD FLAT Shirokane Takanawa
PROUD FLAT Yoyogi Uehara
PROUD FLAT Hatsudai
PROUD FLAT Shibuya Sakuragaoka
PROUD FLAT Gakugei Daigaku
PROUD FLAT Meguro Gyoninzaka
PROUD FLAT Sumida Riverside
PROUD FLAT Kagurazaka
PROUD FLAT Waseda
PROUD FLAT Shinjuku Kawadacho
PROUD FLAT Sangen Jaya
PROUD FLAT Kamata
PROUD FLAT Kamata II
PROUD FLAT Shinotsuka
PROUD FLAT Kiyosumi Shirakawa
PROUD FLAT Monzen Nakacho II
PROUD FLAT Monzen Nakacho I
PROUD FLAT Fujimidai
PROUD FLAT Asakusa Komagata
PROUD FLAT Yokohama
PROUD FLAT Kamioooka
PROUD FLAT Tsurumi II
PRIME URBAN Azabu Juban
PRIME URBAN Akasaka
PRIME URBAN Tamachi
PRIME URBAN Shibaura LOFTPRIME URBAN Hatagaya
PRIME URBAN Yoyogi
PRIME URBAN Bancho
PRIME URBAN Chiyoda Fujimi
PRIME URBAN Iidabashi
PRIME URBAN Ebisu
PRIME URBAN Naka Meguro
PRIME URBAN Gakugei Daigaku
PRIME URBAN Senzoku
PRIME URBAN Meguro Riverside
PRIME URBAN Meguro Ohashi Hills
PRIME URBAN Kachidoki
PRIME URBAN Shinkawa
PRIME URBAN Nihonbashi Yokoyamacho
PRIME URBAN Hongo Ikizaka
PRIME URBAN Hakusan
PRIME URBAN Yotsuya Gaien Higashi
PRIME URBAN Ochiai
PRIME URBAN Nishi Shinjuku I
PRIME URBAN Nishi Shinjuku II
PRIME URBAN Shinjuku Naitomachi
PRIME URBAN Nishi Waseda
PRIME URBAN Sangen JayaⅢ
PRIME URBAN Chitose Karasuyama
PRIME URBAN Karasuyama
PRIME URBAN Sangen Jaya
PRIME URBAN Minami Karasuyama
PRIME URBAN Karasuyama Galleria
PRIME URBAN Karasuyama Court
PRIME URBAN Chitose Funabashi
PRIME URBAN Yoga
PRIME URBAN Shinagawa Nishi
PRIME URBAN Oimachi

4,557
2,336
1,365
921
1,266
1,689
3,907
1,634
2,012
2,099
1,362
1,974
5,085
1,334
614
1,470
1,542
1,589
3,989
3,966
10,949
3,486
1,820
1,915
1,832
3,850
1,286
987
1,574
1,239
4,457
2,016
2,722
1,393
1,176
708
4,589
4,319
2,705
6,446
1,372
2,035
2,980
988
2,464
1,308
482
379
1,632
1,053
1,010
1,367
2,082
1,055
818
1,196
2,463
1,249
1,419

- 32 -

Property Name

Property Management Fees(¥000)PRIME URBAN Osaki
PRIME URBAN Oimachi II
PRIME URBAN Yukigaya
PRIME URBAN Omori
PRIME URBAN Denenchofu Minami
PRIME URBAN Nakano Kamitakada
PRIME URBAN Takaido
PRIME URBAN Nishi Ogikubo
PRIME URBAN Otsuka
PRIME URBAN Komagome
PRIME URBAN Monzen Nakacho
PRIME URBAN Kameido
PRIME URBAN Sumiyoshi
PRIME URBAN Mukojima
PRIME URBAN Kinshi Koen
PRIME URBAN Kinshicho
PRIME URBAN Hirai
PRIME URBAN Kasai
PRIME URBAN Kasai II
PRIME URBAN Kasai East
PRIME URBAN Ekoda
PRIME URBAN Itabashi Kuyakushomae
PRIME URBAN Asakusa
PRIME URBAN Machiya South Court
PRIME URBAN Musashi Koganei
PRIME URBAN Musashino Hills
PRIME URBAN Koganei Honcho
PRIME URBAN Kumegawa
PRIME URBAN Musashi Kosugi comodo
PRIME URBAN Shinyurigaoka
PRIME URBAN Tsurumi Teraya
PRIME URBAN Urayasu
PRIME URBAN Gyotoku I
PRIME URBAN Gyotoku II
PRIME URBAN Gyotoku Ekimae
PRIME URBAN Gyotoku EkimaeⅡ
PRIME URBAN GyotokuⅢ
PRIME URBAN Nishi Funabashi
PRIME URBAN Kawaguchi
URBAN STAGE Ebisu
URBAN STAGE Meguro Aobadai
URBAN STAGE Gakugei Daigaku
URBAN STAGE Nihonbashi Hamacho
URBAN STAGE Naka Ochiai
URBAN STAGE Shinjuku Ochiai
URBAN STAGE Kagurazaka
URBAN STAGE Roka Koen
URBAN STAGE Kamiuma
URBAN STAGE Sangen Jaya II
URBAN STAGE Komazawa
URBAN STAGE Kamikitazawa
URBAN STAGE Ikegami
URBAN STAGE Nakano
URBAN STAGE Ikebukuro
URBAN STAGE Machiya
URBAN STAGE Hino
URBAN STAGE Kawasaki
URBAN STAGE Urayasu
URBAN STAGE Minami Gyotoku II
URBAN STAGE Minami Gyotoku III
URBAN STAGE Minami Gyotoku IV

4,129
2,951
2,213
1,876
1,257
1,903
2,942
750
1,553
1,188
4,905
883
759
1,349
1,927
838
1,781
1,724
2,811
1,100
822
2,250
943
3,856
3,115
2,568
1,426
2,133
4,995
1,310
1,309
1,013
1,621
2,579
1,054
1,971
1,817
1,797
2,985
2,674
3,049
2,079
3,547
1,306
1,424
4,311
683
1,375
792
1,330
1,314
1,778
1,467
6,105
580
1,089
2,317
655
1,098
874
1,222

- 33 -

5. STATUS OF BUSINESS WITH THE ASSET MANAGEMENT COMPANY OVER ITS SUBSIDIARY BUSINESS
Although Nomura Real Estate Asset Management Co., Ltd., the asset management company of the Company, conducts
subsidiary business of Type II Financial Instruments Business, and Building Lots and Buildings Transaction Business there is
no relevant matter under this subject as of May 31, 2014.

- 34 -

Other Information
1. NOTICE
Not applicable.

2. STATUS OF BENEFICIAL INTEREST IN INVESTMENT TRUSTS ESTABLISHED BY THE COMPANY
Not applicable.

3. OTHER MATTERS
From 1 page to 35 pages of this report, the numbers of amount below unit are truncated and the numbers in percentage arerounded to unit unless otherwise mentioned specifically.

- 35 -

Financial Section

Contents
Balance Sheet
Statement of Income and Retained Earnings
Statement of Changes in Net Assets
Statement of Cash Flows
Notes to Financial Statements

38
40
41
42
43

- 36 -

Balance Sheet
Thousands of Yen
As of November 30, 2013

As of May 31, 2014ASSETS
Current Assets:
Cash and bank deposits¥9,965,426¥7,594,123

29,89940,245-

13,692

88,52663,873(95)-

10,083,756

7,711,933

Land

89,010,763

90,093,170

Buildings and structures

78,833,006

79,280,994

Machinery and equipment

1,085,640

1,084,946

Tools, furniture and fixtures

190,292

168,746-

8,857

169,119,701

170,636,713(11,326,578)(10,407,881)

157,793,123

160,228,832

Intangible assets

1,538

2,059

Security deposits

10,87910,819Long-term prepaid expenses

18,51326,099Deferred investment corporation bond issuance costs

32,702

39,97363,632

78,950¥167,940,511¥168,019,715

Rental receivables
Consumption taxes receivable
Other current assets
Allowance for doubtful accounts
Total current assets

Property and Equipment, at Cost:

Construction in progress
SubtotalLess accumulated depreciation
Net property and equipment

Investments and Other Assets:

Total investments and other assets

Total Assets
The accompanying notes to financial statements are an integral part of these statements.

- 37 -

Thousands of Yen
As of November 30, 2013

As of May 31, 2014

LIABILITIESCurrent Liabilities:
Trade accounts payable¥313,874¥259,584

Other accounts payable

295,373

342,715

14,450,000

15,950,000

115,671

129,602828

753

Accrued consumption taxes

51,066-

Rent received in advance

725,085

722,407

Other current liabilities

14,403

4,949

15,966,300

17,410,010

Investment corporation bonds

10,000,000

10,000,000

Long-term debt

65,300,000

63,890,000

Security deposits from tenants

1,447,569

1,483,449

Total long-term liabilities

76,747,569

75,373,449

Total Liabilities

92,713,869

92,783,459

73,231,054

73,231,054

40,00040,000Retained earnings

1,955,588

1,965,202

Total surplus

1,995,588

2,005,202

Total unitholders’ equity

75,226,642

75,236,256

Total Net Assets

75,226,642

75,236,256¥167,940,511¥168,019,715

Current portion of long-term debt
Accrued expenses
Accrued income taxes

Total current liabilities

Long-term Liabilities:

NET ASSETS
Unitholders’ Equity:
Unitholders’ capital
Surplus
Voluntary reserve
Reserve for reduction entry

Total Liabilities and Net Assets
The accompanying notes to financial statements are an integral part of these statements.

- 38 -

Statement of Income and Retained Earnings
Thousands of Yen
For the period
from December 1, 2013
to May 31, 2014

For the period
from June 1, 2013
to November 30, 2013

Operating Revenues and Expenses
Operating Revenues:
Real estate rental revenues
Gain on sales of real estate¥5,556,649

Operating Expenses:
Real estate rental expenses
Asset management fees
Asset custody fee
Administrative service fees
Provision of allowance for doubtful accounts
Bad debts expenses
Other operating expenses

Operating Profit¥5,356,185

37,36550,574

5,594,014

5,406,759

2,453,509

2,250,171

399,676

383,288

15,952

14,95024,072

23,512

95

-

281

916

186,725

175,820

3,080,310

2,848,657

2,513,704

2,558,102

Non-Operating Revenues and Expenses
Non-Operating Revenues:
Interest income
Income from casualty insurance for property
Reversal of dividends payable
Other non-operating revenues
Non-Operating Expenses:
Interest expense
Loan arrangement fees
Interest expense on investment corporation bonds
Amortization of investment corporation bond issuance costs
New investment units issuance costs
Other non-operating expenses

734

723

2,550

2,614

728

715

162

-

4,174

4,052

464,895

465,349

30,52340,35656,07155,751

7,270

7,270

-

24,873

2,622

2,470

561,381596,069

Ordinary Income

1,956,497

1,966,085

Income before Income Taxes

1,956,497

1,966,085

977

900

(3)

51

1,955,523

1,965,134

65

68¥1,955,588¥1,965,202

Income Taxes:
Current
Deferred
Net Income
Retained earnings brought forward
Retained Earnings at End of Period
The accompanying notes to financial statements are an integral part of these statements.

- 39 -

Statement of Changes in Net Assets
For the period from December 1, 2013 to May 31, 2014
Thousands of Yen

Unitholders’ Equity
Surplus
Units

Balance as of December 1, 2013

Voluntary
Reserve
Reserve for
Reduction
Entry

Unitholders’CapitalRetained
Earnings

Total
Unitholders’EquityTotal Surplus

Total
Net Assets

160,800¥ 73,231,054¥40,000¥1,965,202¥2,005,202¥75,236,256¥75,236,256

Cash distribution paid

-

-

-

(1,965,137)(1,965,137)(1,965,137)(1,965,137)

Net income

-

-

-

1,955,523

1,955,523

1,955,523

1,955,523

160,800¥73,231,054¥40,000¥1,955,588¥1,995,588¥75,226,642¥75,226,642

Balance as of May 31, 2014

For the period from June 1, 2013 to November 30, 2013
Thousands of Yen

Unitholders’ Equity
Surplus
Voluntary
Reserve
Reserve for
Reduction
Entry

Total
Unitholders’EquityUnits

Unitholders’Capital150,936¥ 68,961,323-¥1,876,959¥1,876,959¥70,838,282¥70,838,282

9,864

4,269,731---

4,269,731

4,269,731

Cash distribution paid
Provision of reserve for
reduction entry

-

-

-

(1,836,891)(1,836,891)(1,836,891)(1,836,891)--

40,000(40,000)---

Net income

-

-

-

1,965,134

1,965,134

1,965,134

1,965,134

160,800¥ 73,231,054¥40,000¥1,965,202¥2,005,202¥75,236,256¥75,236,256

Balance as of June 1, 2013
Issuance of new investment units

Balance as of November 30, 2013

Retained
Earnings

The accompanying notes to financial statements are an integral part of these statements.

- 40 -

Total Surplus

Total
Net Assets

Statement of Cash Flows
Thousands of Yen
For the period
from December 1, 2013
to May 31, 2014

For the period
from June 1, 2013
to November 30, 2013

Cash Flows
Cash Flows from Operating Activities
Income before income taxes¥1,956,497¥ 1,966,085

Depreciation

1,053,356

1,012,451

7,270

7,270

Amortization of investment corporation bonds issuance costs
Investment units issuance costs-

24,873

Interest income

(734)

(723)

Interest expense

520,966

521,101

95(418)

Decrease (Increase) in rental receivables

10,346(8,733)

Decrease (Increase) in consumption taxes receivable

13,692(13,692)

Decrease (Increase) in prepaid expenses

18,261(44,708)

Increase (Decrease) in trade accounts payable

54,29041,106

Increase (Decrease) in other accounts payable(21,509)46,497

Increase (Decrease) in accrued consumption taxes

51,066(14,714)

Increase (Decrease) in rent received in advance

2,678

62,144

211,195

1,383,205

1,392,443-

Increase (Decrease) in allowance for doubtful accounts

Decrease in tangible fixed assets due to sales
Decrease in tangible fixed assets in trust due to sales
Other(25,879)

26,5295,244,033

5,008,273

734

723

(534,897)(528,800)(902)(1,215)

4,708,968

4,478,981

Payments for purchases of property and equipment(247,068)(12,962,645)

Reimbursement of security deposits to tenants(186,991)(156,934)

Proceeds from security deposits from tenants

151,111

231,700

SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

Cash Flows from Investing Activities

Payments for security deposits
Proceeds from collection of security deposits
Net cash provided by (used in) investing activities

(60)

-

-

60

(283,008)(12,887,819)-

7,500,000

Cash Flows from Financing Activities
Proceeds from short-term debt
Repayment of short-term debt-

(7,500,000)

Proceeds from long-term debt

9,200,000

13,200,000

Repayment of long-term debt

(9,290,000)(6,362,000)-

4,269,731(10)(24,863)(1,964,647)(1,837,059)(2,054,657)

9,245,809

2,371,303

836,971

Proceeds from issuance of new investment units
Payments of investment units issuance costs
Distributions to unitholders
Net cash provided by (used in) financing activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period

7,594,123

6,757,152

Cash and Cash Equivalents at End of Period¥9,965,426¥7,594,123

The accompanying notes to financial statements are an integral part of these statements.

- 41 -

Notes to Financial Statements
1.

ORGANIZATION
Nomura Real Estate Residential Fund, Inc. (the “Company”) is a real estate investment corporation formed to own and invest primarily inresidential rental properties. The Company is externally managed by a licensed asset management company, Nomura Real Estate AssetManagement Co., Ltd. (“NREAM”). NREAM is a wholly-owned subsidiary of Nomura Real Estate Holdings, Inc.
On August 3, 2006, the Company was incorporated under the Act on Investment Trusts and Investment Corporations (the “Investment TrustAct”) of Japan. On February 14, 2007, the Company was listed on the Tokyo Stock Exchange as the 41st J-REIT and started operations
on the following day. As of May 31, 2014, the Company owned a portfolio of 153 residential rental properties containing an aggregate of
approximately 274,346.62 square meters of leasable area and leased space to 153 tenants.

2.

BASIS OF PRESENTATIONThe Company maintains its accounting records and prepares its financial statements in accordance with accounting principles generally
accepted in Japan (“Japanese GAAP”), including provisions set forth in the Investment Trust Act of Japan, the Companies Act of Japan, theFinancial Instruments and Exchange Act of Japan and related regulations, which are different in certain respects as to the application anddisclosure requirements of International Financial Reporting Standards.
The accompanying financial statements are a translation of the audited financial statements of the Company, which were prepared inaccordance with Japanese GAAP and were presented in the Securities Report of the Company filed with the Kanto Local Finance Bureau.
In preparing the accompanying financial statements, certain reclassifications and modifications have been made to the financial statements
issued domestically in order to present them in a format that is more familiar to readers outside Japan. In addition, the notes to financial
statements include certain information that might not be required under Japanese GAAP but is presented herein as additional information.
Amounts have been rounded to the nearest thousand of yen in the accompanying financial statements and the notes thereto, whereas
amounts were truncated in the Japanese financial statements prepared in accordance with Japanese GAAP.
The Company’s fiscal period is a six-month period which ends at the end of May or November. The Company does not prepare
consolidated financial statements because it has no subsidiaries.

3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESCash and cash equivalents
Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments that are highly liquid, readily
convertible to cash, with an insignificant risk of market value fluctuation, and with a maturity of three months or less when purchased.
Property and equipment
Property and equipment are stated at cost, which includes the purchase price and related costs for acquisition, less accumulated
depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the fixed assets outlined below:
Buildings
3 - 70 years
Structures
2 - 50 years
Machinery and equipment
3 - 15 years
Tools, furniture and fixtures
3 - 15 years
Intangible assets
Intangible assets are amortized by the straight-line method.
Long-term prepaid expenses
Long-term prepaid expenses are amortized by the straight-line method.
Impairment of fixed assets
The Company reviews fixed assets for impairment whenever events or changes in circumstances indicate that the carrying value of its fixed
assets may not be recoverable. An impairment loss is recognized if the carrying value of an asset exceeds the aggregate estimated future
cash flows. If a fixed asset is determined to be impaired, it is written down to its recoverable amount and the write-down is recorded as an
impairment loss during the period in which it occurs. No impairment losses have been recognized to date.
Deferred investment corporation bond issuance costs
Deferred investment corporation bond issuance costs are amortized by the straight-line method over the respective terms of the bonds.
Allowance for doubtful accounts
For allowance for doubtful accounts against possible losses arising from default on receivables, uncollectable amount is estimated andrecorded by investigating collectability based on historical loan loss ratios for general receivables and on a case-by-case examination for
doubtful and other specific receivables.
Accounting treatment of beneficial interests in real estate
All assets and liabilities held in trust, for which the real estate in possession of the Company was entrusted, and all related earnings andexpenses incurred are reflected in the accompanying balance sheet and statement of income and retained earnings, respectively.
Revenue recognition
Operating revenues consist of rental revenues including base rents and common area charges, and other operating revenues including utility
charge reimbursements, parking space rental revenues and other income. Rental revenues are generally recognized on an accrual basis- 42 -

over the life of each lease. Utility charge reimbursements are recognized when earned and their amounts are reasonably estimated.
Property related taxes
Property in Japan is subject to property taxes, urban planning taxes and depreciable property taxes on a calendar year basis. The taxes
related to property are generally imposed based on the value of the relevant property and incurred for fiscal period.
The seller of a property is liable for property related taxes for the period from the purchase date through the end of that calendar year
because taxes are imposed on the owner registered in the record as of January 1 for the entire year based on the assessment made by the
local government. The amount applicable to the buyer of a property is usually settled between each party and capitalized as part of theacquisition cost of the property. No capitalized property related taxes were incurred for the six-month period ended May 31, 2014. The
capitalized property related taxes amounted to ¥12,493 thousand for the six-month period ended November 30, 2013.
Income taxes
Deferred tax assets and liabilities are computed based on the differences between the financial statements and income tax bases of assets
and liabilities using the applicable statutory tax rates.
Consumption taxes
Consumption taxes received and paid are not included in the accompanying statement of income and retained earnings.
Derivative financial instruments
The Company utilizes interest-rate swap contracts as derivative financial instruments only for the purpose of hedging its exposure tochanges in interest rates. The Company defers recognition of gains or losses resulting from changes in the fair value of interest-rate swap
contracts which meet the criteria for deferral hedge accounting.
Although the deferred hedge treatment is generally applied, the Company applies special treatment to those interest-rate swap
contracts that meet the criteria for such special treatment. Under the special treatment, interest-rate swaps are not remeasured at fair value;
instead, the net amount paid or received under the interest rate swap contract is recognized and included in interest expense or income.

4.

CASH AND CASH EQUIVALENTS
Cash and cash equivalents as of May 31, 2014 and November 30, 2013 consist of the following:Thousands of Yen
As of November 30, 2013

As of May 31, 2014

5.

Cash and bank deposits¥9,965,426¥7,594,123

Cash and cash equivalents¥9,965,426¥7,594,123

SCHEDULE OF PROPERTY AND EQUIPMENT
Property and equipment as of May 31, 2014 and November 30, 2013 consist of the following:Thousands of Yen
As of November 30, 2013

As of May 31, 2014
Acquisition costs
Land

Book value¥73,800,621

Buildings and structures
Accumulated depreciation
Machinery and equipment
Accumulated depreciation

Acquisition costs¥73,800,621¥67,172,205

60,624,501(7,570,893)

69,780,590(9,156,089)¥67,172,205

66,100,240

1,035,599

58,529,347

1,013,436
720,827(268,654)(53,995)

112,576(43,842)

90,283

-

-

8,857

8,857

Land in trust

15,210,142

15,210,142

22,920,965

22,920,965

Buildings and structures in trust

9,052,416

Tools, furniture and fixtures
Accumulated depreciation
Construction in progress

Accumulated depreciation
Machinery and equipment in trust(314,772)

Book value

166,571(1,768,943)

Accumulated depreciation(27,120)
23,721

Accumulated depreciation
Total

134,125

13,180,754
7,283,473

50,041Tools, furniture and fixtures in trust

744,782(2,479,837)

10,700,917

71,51022,921(36,627)

34,88334,621(5,659)18,062(8,028)26,593¥157,793,123¥157,793,123¥160,228,832¥160,228,832- 43 -

6.

SHORT-TERM DEBT
Short-term debt as of May 31, 2014 and November 30, 2013 consist of the following:
As of May 31, 2014
Amount(Thousands of Yen)

As of November 30, 2013
Amount(Thousands of Yen)

Weighted-averageinterest rate

Weighted-averageinterest rate
(Note 1)

(Note 1)

Unsecured loans from banks due on February 27, 2014--

¥2,000,000

2.14360%

Unsecured loans from an insurance company due on February 27, 2014--

2,000,000

2.13625%

Unsecured loans from banks due on February 27, 2014--

1,700,000

0.78591%

Unsecured loans from banks due on February 27, 2014--

3,500,000

0.78591%

Unsecured loans from banks due on August 27, 2014

¥3,170,000

0.71000%

3,170,000

0.72091%

Unsecured loans principally from banks due on September 5, 2014

3,400,000

0.94700%

3,400,000

0.94700%

Unsecured loans from a bank due on February 26, 2015

1,000,000

1.79200%--

Unsecured loans from a bank due on February 27, 2015

1,300,000

2.23500%--

Unsecured loans from banks due on February 27, 2015

5,400,000

0.96365%--

Unsecured loans from a bank due on August 27, 2016 (Note 2)

80,0002.10000%

80,0002.10000%

Unsecured loans from a bank due on February 26, 2017 (Note 3)

100,000

2.03000%

100,000

2.03000%

Total¥15,950,000¥14,450,000

Note 1: The weighted-average interest rate is weighted by the balance of each borrowing at the end of the period and rounded to the nearest fifth decimal
place. As for the borrowings, which were hedged by interest-rate swaps for the purpose of avoiding interest rate fluctuation risk, the swapped interest
rates are used to calculate the weighted average of interest.
Note 2: Installments of ¥40 million will be made on the 27th day of every sixth month starting on February 27, 2010, with the remaining payment of ¥1,080
million to be repaid on August 27, 2016.
Note 3: Installments of ¥50 million will be made on the 26th day of every sixth month starting on August 26, 2010, with the remaining payment of ¥1,350
million to be repaid on February 26, 2017.

7.

LONG-TERM DEBT
Long-term debt as of May 31, 2014 and November 30, 2013 consist of the following:
As of May 31, 2014
Amount(Thousands of Yen)

As of November 30, 2013
Amount(Thousands of Yen)

Weighted-averageinterest rate

Weighted-averageinterest rate
(Note 1)

(Note 1)

Unsecured loans from a bank due on February 26, 2015--

¥1,000,000

1.79200%

Unsecured loans from a bank due on February 27, 2015--

1,300,000

2.23500%

Unsecured loans from banks due on February 27, 2015--

5,400,000

0.96365%

Unsecured loans from banks due on August 27, 2015

¥9,700,000

1.00900%

9,700,000

1.00900%

Unsecured loans from a bank due on December 26, 2015

4,700,000

1.00000%

4,700,000

1.00000%

Unsecured loans from banks due on June 26, 2016

9,400,000

1.11700%

9,400,000

1.11700%

Unsecured loans from banks due on February 26, 2017

1,800,000

0.69000%

1,800,000

0.69000%

Unsecured loans principally from insurance companies due on August27, 2017
Unsecured loans from banks due on February 27, 2018

3,920,000

1.08500%

3,920,000

1.08500%

5,420,000

1.12013%5,420,000

1.12013%

Unsecured loans from banks due on August 26, 2018

5,400,000

0.99000%

5,400,000

0.99000%

Unsecured loans from banks due on November 26, 20191,600,000

1.16500%

1,600,000

1.16500%

Unsecured loans from an insurance company due on May 27, 2020

1,000,000

1.48625%

1,000,000

1.48625%

Unsecured loans from an insurance company due on August 26, 2020

800,000

1.28277%

800,000

1.28277%

Unsecured loans from banks due on August 26, 2020

4,700,000

1.18000%

4,700,000

1.18000%

Unsecured loans from an insurance company due on August 26, 2020

500,000

1.15566%

500,000

1.15566%

Unsecured loans from an insurance company due on February 26, 2021

2,000,000

1.17750%--

Unsecured loans from a bank due on May 27, 2021

1,000,000

1.68200%

1,000,000

1.68200%

Unsecured loans from a bank due on May 27, 2021

3,500,000

1.62500%

3,500,000

1.62500%

Unsecured loans from a bank due on August 26, 2021

2,700,000

1.24100%--

Unsecured loans from banks due on February 26, 2022

4,500,000

1.31850%--

Unsecured loans from a bank due on August 27, 2016 (Note 2)

1,160,000

2.10000%

1,200,000

2.10000%- 44 -

Unsecured loans from a bank due on February 26, 2017 (Note 3)

1,500,000

Total

1,550,000

2.03000%

2.03000%¥63,890,000¥65,300,000

Note 1: The weighted-average interest rate is weighted by the balance of each borrowing at the end of the period and rounded to the nearest fifth decimal
place. As for the borrowings, which were hedged by interest-rate swaps for the purpose of avoiding interest rate fluctuation risk, the swapped interest
rates are used to calculate the weighted average of interest.
Note 2: Installments of ¥40 million will be made on the 27th day of every sixth month starting on February 27, 2010, with the remaining payment of ¥1,080
million to be repaid on August 27, 2016.
Note 3: Installments of ¥50 million will be made on the 26th day of every sixth month starting on August 26, 2010, with the remaining payment of ¥1,350
million to be repaid on February 26, 2017.

The scheduled repayment amounts of long-term debt for each of the five years after the balance sheet date (excluding the current
portion of long-term debt) are as follows.

Long-term debt

8.

1-2 years
14,580,000

2-3 years
13,680,000

3-4 years
9,340,000

Thousands of Yen
4-5 years
5,400,000

INVESTMENT CORPORATION BONDS
Details of investment corporation bonds outstanding are summarized as follows:
As of May 31, 2014

As of November 30, 2013

AmountWeighted- average(Thousands of Yen)
interest rate
First series of unsecured investment corporation bonds
Due on February 25, 2016
Second series of unsecured investment corporation bonds
Due on February 24, 2017
Total

Amount(Thousands of Yen)

Weighted- averageinterest rate

¥5,000,000

1.21000%¥5,000,000

1.21000%

5,000,000

1.03000%

5,000,000

1.03000%¥10,000,000¥10,000,000

The scheduled redemption amounts of investment corporation bonds for each of the five years after the balance sheet date are as follows.

Investment corporation bonds

9.

Within a year－

1-2 years
5,000,000

2-3 years
5,000,000

3-4 years－

Thousands of Yen
4-5 years－

UNITHOLDERS’ EQUITYThe Company issues only non-par value investment units in accordance with the Investment Trust Act. The entire amount of the issue
price of new units is designated as stated capital. The Company is required to maintain net assets of at least ¥50,000 thousand as set forthin the Investment Trust Act.

10. PER UNIT INFORMATIONThe net asset values per unit and the net income per unit as of May 31, 2014 and November 30, 2013 were as follows:

Net asset values per unit
Net income per unit

For the period
from December 1, 2013
to May 31, 2014
¥467,827¥12,161

For the period
from June 1, 2013
to November 30, 2013
¥467,887¥12,591

The net income per unit is calculated by dividing net income by the weighted-average number of units outstanding for the respective
six-month period.
Note: The basis for calculating net income per unit is as follows.

Net income (Thousands of Yen)
Amount not available to ordinary unitholders (Thousands of Yen)
Net income available to ordinary unitholders (Thousands of Yen)
Average number of units during the period

For the period
from December 1, 2013
to May 31, 2014
¥1,955,523¥1,955,523
160,800- 45 -For the period
from June 1, 2013
to November 30, 2013
¥1,965,134¥1,965,134
156,072

11. RELATED PARTY TRANSACTIONS
For the periods from December 1, 2013 to May 31, 2014 and from June 1, 2013 to November 30, 2013
Parent company and major corporate unitholders
Not applicable
Subsidiaries and affiliates
Not applicable
Fellow subsidiary companies
Not applicable
Directors and major individual unitholders
Not applicable

12. INCOME TAXESThe Company, as an investment corporation, is subject to corporate income taxes at a statutory tax rate of approximately 40% for thesix-month periods ended May 31, 2014 and November 30, 2013. However, the Company may deduct dividend distributions paid to its
unitholders from its taxable income amounts, provided such distributions meet the requirements under the Act on Special Measures
Concerning Taxation of Japan. Under this act, an investment corporation must meet a number of tax requirements, including a requirement
to distribute in excess of 90% of its distributable income for the fiscal period, in order to deduct such amounts. If the investment
corporation does not satisfy all of the requirements, the entire taxable income of the investment corporation will be subject to regular
corporate income taxes.
Since the Company distributed in excess of 90% of its distributable income in the form of cash distributions totaling ¥1,955,489
thousand and ¥1,965,137 thousand for the six-month periods ended May 31, 2014 and November 30, 2013, respectively, such distributions
were treated as deductible distributions for purposes of corporate income taxes. The following summarizes the significant differences
between the statutory tax rate and the effective tax rate:
For the period
For the period
from June 1, 2013
from December 1, 2013
to November 30, 2013
to May 31, 2014
Statutory tax rate
36.59%
36.59%
Deductible cash distributions(36.57)(36.57)
Other
0.03
0.03
Effective tax rate
0.05%
0.05%

13. FINANCIAL INSTRUMENTS
Overview(1) Policy for Financial Instruments
Upon acquisition of property-related assets, the Company may raise funds through certain financing methods including borrowings,
issuance of investment corporation bonds and issuance of investment units. In financing through interest-bearing debt, to secure stablefinancing capability and reduce future risks of rising interest rates, the Company’s investment policy is to secure longer-term, fixed-rateborrowings with well-diversified maturities.
The Company enters into derivative transactions only for the purpose of reducing risk of future interest rate fluctuations and does notengage in speculative transactions.
(2) Type and Risk of Financial Instruments and Related Risk Management
Debts and investment corporation bonds are primarily used to fund the acquisition of property-related assets as well as the repayment ofdebts and redemption of investment corporation bonds. The Company is exposed to liquidity risk of being unable to meet its obligations onscheduled due dates. The Company controls and limits such risk by diversifying not only the financial institutions, but also the type offinancing to include the effective use of surplus funds and direct financing from the capital markets such as issuance of investment units. In
addition, the Company is exposed to the market risk arising from fluctuations in interest rates on its floating-rate debts. However, the effectof such risk on the operation of the Company is limited by maintaining the LTV ratio at low levels and the ratio of long-term fixed-rate
debts to total debt at high levels. Furthermore, the Company may utilize derivative transactions (interest-rate swap transactions) as ahedging instrument to reduce the market risk under floating-rate debts by swapping such floating-rate interest payments for fixed-rateinterest payments.
Bank deposits are held as a means of investing surplus funds, and the Company is exposed to the credit risk that financial institutions
may default. However, the effect of such risk is limited by diversifying the financial institutions with which surplus funds are deposited.
(3) Supplementary Explanation on Estimated Fair Value of Financial Instruments
The fair value of financial instruments is based on the quoted market price, if applicable. When there is no quoted market price available,
fair value is reasonably estimated. Certain assumptions are used for the estimation of fair value. Accordingly, the result of such estimation
may change if different assumptions are used. Furthermore, the contractual amounts of derivative transactions stated in “19. Derivatives
and Hedge Accounting” below do not represent the market risk involved in these derivative transactions.

- 46 -

Fair Value of Financial Instruments
For the period from December 1, 2013 to May 31, 2014
The following table summarizes the carrying value and the estimated fair values of financial instruments as of May 31, 2014.
Thousands of Yen

( i )
(ii)
(iii)
(iv)
(v)

Carrying value (Note 1)¥9,965,426(14,450,000)(10,000,000)(65,300,000)－

Cash and bank deposits
Current portion of long-term debt
Investment corporation bonds
Long-term debt
Derivative transactions

Fair value (Note 1)¥9,965,426(14,498,646)(10,161,385)(65,982,297)－

Difference－¥48,646
161,385
682,297－

For the period from June 1, 2013 to November 30, 2013
The following table summarizes the carrying value and the estimated fair values of financial instruments as of November 30, 2013.
Thousands of Yen

( i )
(ii)
(iii)
(iv)
(v)

Carrying value (Note 1)¥7,594,123(15,950,000)(10,000,000)(63,890,000)－

Cash and bank deposits
Current portion of long-term debt
Investment corporation bonds
Long-term debt
Derivative transactions

Fair value (Note 1)¥7,594,123(15,977,512)(10,170,565)(64,570,248)－

Difference－¥27,512
170,565
680,248－

Note 1: The numbers in parenthesis indicate liabilities.
Note 2: Method for determining the fair value of financial instruments and derivative transactions(i) Cash and bank deposits
As these items are settled within a short-term period, their fair value is nearly equal to the carrying value. Therefore, for these items, the carrying
value is reported as the fair value.
(ii) Current portion of long-term debt and (iv) Long-term debt
For floating-rate long-term debt, the carrying value is reported as it is considered to be approximately equal to the fair value because such debt
reflects the market interest rates within a short-term period. (However, the fair value of certain floating-rate long-term debt that qualifies for the
special treatment of interest-rate swaps (see “19. Derivatives and Hedge Accounting”) is determined by discounting the sum of its principal andinterest payments net of any cash flows from the interest-rate swap at a rate reasonably estimated to be applicable to similar fixed-rate debt.) The
fair value of fixed-rate long-term debt is determined by discounting the sum of its principal and interest payments at a rate reasonably estimatedto be applicable to similar fixed-rate debt.
(iii) Investment corporation bonds
The fair value of investment corporation bonds issued by the Company is determined based on their market prices.
(v) Derivative transactions
See “19. Derivatives and Hedge Accounting.”
Note 3: Redemption schedule for cash and bank deposits as of May 31, 2014

Cash and bank deposits
Total

Due within one
year¥9,965,426

After one year,
within two years－

After two years,
within three years－

After three years,
within four years－¥9,965,426

－

－

－

Thousands of Yen
After four years,
After five years
within five years
－
－
－

－

Redemption schedule for cash and bank deposits as of November 30, 2013

Cash and bank deposits
Total

Due within one
year¥7,594,123

After one year,
within two years－

After two years,
within three years－

After three years,
within four years－¥7,594,123

－

－

－

- 47 -

Thousands of Yen
After four years,
After five years
within five years
－
－
－

－

Note 4: Redemption schedule for investment corporation bonds and debt as of May 31, 2014
Due within one
year

After one year,
within two years

After two years,
within three years

After three years,
within four years

Thousands of Yen
After four years,
After five years
within five years¥14,450,000

－

－

－

－

Investment corporation bonds－¥5,000,000¥5,000,000

－

－

－

Long-term debt－

14,580,000

13,680,000¥9,340,000¥5,400,000¥22,300,000¥14,450,000¥19,580,000¥18,680,000¥9,340,000¥5,400,000¥22,300,000

Current portion of long-term debt

Total

－

Redemption schedule for investment corporation bonds and debt as of November 30, 2013
Due within one
year

After one year,
within two years

After two years,
within three years

After three years,
within four years

Thousands of Yen
After four years,
After five years
within five years¥15,950,000

－

－

－

－

Investment corporation bonds－－¥5,000,000¥5,000,000－－

Long-term debt－

¥17,580,000

15,320,000

7,070,000¥10,820,000¥13,100,000¥15,950,000¥17,580,000¥20,320,000¥12,070,000¥10,820,000¥13,100,000

Current portion of long-term debt

Total

－

14. INVESTMENT AND RENTAL PROPERTIESThe Company owns in its portfolio certain residential buildings (including land) for lease located in Tokyo and other areas. The following
table summarizes the carrying value and the estimated fair value of these properties.
Thousands of Yen
For the period
from December 1, 2013
to May 31, 2014

For the period
from June 1, 2013
to November 30, 2013

Carrying value
Balance at beginning of the period¥160,228,832¥149,656,963

Change during the period(2,435,709)

10,571,869

Balance at end of the period

157,793,123

160,228,832

Fair value¥156,322,000¥155,472,000
Note1: The carrying value represents the acquisition cost less accumulated depreciation.
Note2: The major decrease in the carrying value during the period ended May 31, 2014 was mainly due to the sale of URBAN STAGE Ikegami (¥1,392,443
thousand) and URBAN STAGE Machiya (¥211,195 thousand). The major increase in the carrying value during the period ended November 30, 2013was mainly due to the acquisition of URBAN STAGE Ebisu (¥1,072,272 thousand), URBAN STAGE Meguro Aobadai (¥1,229,308 thousand),
URBAN STAGE Gakugei Daigaku (¥946,679 thousand), URBAN STAGE Nihonbashi Hamacho (¥1,524,677 thousand), URBAN STAGE
Kagurazaka (¥2,738,757 thousand), URBAN STAGE Ikebukuro (¥3,428,501 thousand) and URBAN STAGE Sakaisuji Honmachi (¥1,869,171
thousand) and the major decrease in the carrying value during the period ended November 30, 2013 was mainly due to the sale of PRIME URBAN
Kita Senzoku (¥569,900 thousand), URBAN STAGE Takinogawa (¥291,612 thousand), URBAN STAGE Koganei (¥226,921 thousand) and
URBAN STAGE Minami Gyotoku V (¥294,772thousand).
Note3: The fair value as of May 31, 2014 and November 30, 2013 represents the sum of the appraisal values estimated by external real estate appraisers.

The real estate rental revenues and expenses for the six-month period ended May 31, 2014 and November 30, 2013 are presented in “16.
Breakdown of Real Estate Rental Revenues and Expenses.”

15. SEGMENT INFORMATION
For the period from December 1, 2013 to May 31, 2014 and from June 1, 2013 to November 30, 2013
Segment Information
Since the Company has been engaged in the real estate leasing business as a single segment, segment information has been omitted.
Related Information
1. Information about products and services
Since revenues from external customers of products and services within a single segment are more than 90 percent of total operating
revenues, information about products and services has been omitted.
2. Information about geographical areas(1) Revenues
Since more than 90 percent of the total operating revenues were generated from external customers in Japan, geographicalbreakdown of revenues has been omitted.
(2) Property and equipment
Since more than 90 percent of the total property and equipment on the balance sheet are located in Japan, geographical breakdownof property and equipment has been omitted.

- 48 -

3. Information about major clients
Information about major clients for the six-month period ended May 31, 2014 and November 30, 2013 were as follows:
For the six-month period from December 1, 2013 to May 31, 2014
Name of client
Nomura Real Estate Partners Co., Ltd.

Revenues(Thousands of yen)
¥4,262,192

Related segment
Real estate leasing business

For the six-month period from June 1, 2013 to November 30, 2013
Name of client
Nomura Living Support Co., Ltd.
Haseko Livenet Inc.

Revenues(Thousands of yen)
¥2,794,635
1,349,384

Related segment
Real estate leasing business
Real estate leasing business

16. BREAKDOWN OF REAL ESTATE RENTAL REVENUES AND EXPENSES
Real estate rental revenues and expenses for the six-month period ended May 31, 2014 and November 30, 2013 consist of the following:
For the period
from December 1, 2013
to May 31, 2014

Thousands of Yen
For the period
from June 1, 2013
to November 30, 2013

¥5,556,649¥5,356,185

5,143,831

5,013,520

4,851,857

4,733,340

291,974

280,180

Other rental revenues

412,818

342,665

Parking revenues

134,802

134,455

Incidental income

199,126

140,643

Real estate rental revenues
Rental revenues
Rental revenues
Common area charges

Other miscellaneous revenues

78,89067,5672,453,509

2,250,171

Property management costs

207,134

203,625

Property management fees

314,215

268,809

Property and other taxes

263,901

260,682

Utility expenses

109,797

92,470Casualty insurance

7,958

8,419

300,325

225,278

1,053,356

1,012,451

Real estate rental expenses

Repairs and maintenance
Depreciation
Other rental expenses
Real estate rental profits

196,823

178,437¥3,103,140¥3,106,014

17. BREAKDOWN OF GAIN AND LOSS ON SALES OF REAL ESTATE
Gain on sales of real estate for the six-month period ended May 31, 2014 and November 30, 2013 consist of the following:
For the period
from December 1, 2013
to May 31, 2014

Thousands of Yen
For the period
from June 1, 2013
to November 30, 2013

Proceeds from sales of real estate¥1,678,883¥1,478,329

Cost of sales of real estate

1,603,638

1,383,205

Other related sales expenses

37,88044,550Gain on sales of real estate¥37,365¥50,574

Gain on sales of real estate

18. LEASESThe Company, as a lessor, enters into lease agreements for which fixed monthly rents are due in advance with a lease term of generally two
years for residential space. The future minimum rental revenues under existing non-cancelable operating lease agreements as of May 31,
2014 and November 30, 2013 are summarized as follows:
As of May 31, 2014
Due within one year
Due after one year
Total

¥435,377
144,344¥579,721

19. DERIVATIVES AND HEDGE ACCOUNTING
Derivative transactions as of May 31, 2014
(1) There were no derivative financial instruments not subject to hedge accounting.
(2) Derivative financial instruments subject to hedge accounting were as follows:- 49 -

Thousands of Yen
As of November 30, 2013
¥482,969
16,813¥499,782

Thousands of Yen
Notional amount

Hedge accounting
methodType of derivative
instruments

Main hedged item

Special treatment ofinterest-rate swaps

Interest-rate swaps:
Received/floating
and paid/fixedLong-term debt

Due after one year
56,020,000

46,220,000

Fair value

Method used for
determining fair value(*)* Since the derivative financial instruments qualifying for the special treatment of interest-rate swaps are accounted for as one transaction
together with their hedged item, long-term debt, the fair value of these derivatives is included in that of related long-term debt (see “13.
Financial Instruments (Note 2) (ii) Current portion of long-term debt and (iv) Long-term debt”).
Derivative transactions as of November 30, 2013
(1) There were no derivative financial instruments not subject to hedge accounting.
(2) Derivative financial instruments subject to hedge accounting were as follows:
Thousands of Yen
Notional amount

Hedge accounting
methodType of derivative
instruments

Main hedged item

Special treatment ofinterest-rate swaps

Interest-rate swaps:
Received/floating
and paid/fixedLong-term debt

Due after one year
50,820,000

45,420,000

Fair value

Method used for
determining fair value(*)* Since the derivative financial instruments qualifying for the special treatment of interest-rate swaps are accounted for as one transaction
together with their hedged item, long-term debt, the fair value of these derivatives is included in that of related long-term debt (see “13.
Financial Instruments (Note 2) (ii) Current portion of long-term debt and (iv) Long-term debt”).

20. SIGNIFICANT SUBSEQUENT EVENTSTransfer of a property
On June 30, 2014, the Company entered into a sale and purchase agreement regarding the transfer of the property stated below and completed
the transfer. Consumption taxes and adjustments of property taxes are excluded from the transfer price.
URBAN STAGE Minami Gyotoku IV
Type of Assets: Real estate
Date of Agreement: June 30, 2014
Transfer Date
: June 30, 2014
Transfer Price: ¥256,840 thousand
Transferee: Japanese industrial company
Impact on Revenues: Approximately ¥6million (sales expenses excluded) of gain on sales of real estate will be recorded for the 16th
fiscal period (from June 1, 2014 to November 30, 2014).

- 50 -

Independent Auditor’s Report- 51 -

Business Structure
Asset Management
Company

Asset Custodian
General Administration

The FundAsset
Management
Services
Agreement

Asset Custody
Agreement

Administration ofUnitholders Register
Management ofSpecial Accounts

Administration
Agreement, etc.

Mitsubishi UFJ
Trust and Banking
Corporation

Property
Information

Information & ResearchService Providers

Nomura Real Estate Residential Fund, Inc.

Nomura Real Estate
Development Co., Ltd.
Nomura Real Estate
Urban Net Co., Ltd.

Accounting
Service
Agreement

General Administration(Accounting, etc.)

Heiseikaikeisha Tax
Corporation
Unitholders Meeting

Specified Related Party

Board of Directors Meeting

Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Development Co., Ltd.

Financial Agent
Agreement

AuditorErnst & Young ShinNihon LLC

Nomura Real Estate
Partners Co., Ltd.

General Administration(Financial Agent)

The Bank ofTokyo- Mitsubishi UFJ, Ltd.
Sumitomo Mitsui
Banking Corporation

Debt
FinanceFinancial Institutions, etc.

Investment

Debt
Rent, etc.

Residential Properties(Real Estate Related Assets)

Asset
CapitalInvestment

Property Management
Instructions for
Rent &
Management
Rental Strategies,
Plans for
Repairs, etc.

Repaymentof Principal& Interest

Unitholders

EquityProperty Management
Companies
Select the best property
management companies
for each property

Distribution

Unitholders

Corporate Data
Corporate Name
Nomura Real Estate Residential Fund, Inc.
Corporate Office8-5-1 Nishi Shinjuku Shinjuku-ku, Tokyo
160-0023, Japan
http://www.nre-rf.co.jp/english/
Date of Incorporation
August 3, 2006
Stock Listing
Tokyo Stock Exchange (Securities Code: 3240)
Fiscal Period
Six months ending on May 31 and November 30
Capital¥73,231,053,636 (as of May 31, 2014)
Number of Units Issued
160,800 (as of May 31, 2014)

Transfer Agent
Mitsubishi UFJ Trust and Banking Corporation
1-4-5 Marunouchi Chiyoda-ku, Tokyo 100-8212, Japan
Business Office of the Transfer Agent
Corporate Agency Department
Mitsubishi UFJ Trust and Banking Corporation
7-10-11 Higashisuna Koto-ku, Tokyo 137-8081, Japan
Tel: +81-3-5683-5111
Independent Auditors
Ernst & Young ShinNihon LLC
Hibiya Kokusai Bldg. 2-2-3 Uchisaiwai-cho Chiyoda-ku,
Tokyo 100-0011, Japan
Investor Relations
For further information, please contact the Asset Management
Company:
Nomura Real Estate Asset Management Co., Ltd.
8-5-1 Nishi Shinjuku, Shinjuku-ku, Tokyo 160-0023, Japan
Tel: +81-3-3365-7729

Number of Unitholders
10,595(as of May 31, 2014)- 52 -

Nomura Real Estate Residential Fund’s Website
The Company strives to provide accurate and timely disclosure of information by utilizing the website.
・ Strength of NRF, Asset Management Policies, Corporate Profile
・ Portfolio Summary, Portfolio Data, Occupancy Rates.
・ News, Latest Data, Performance, Distributions, Calendar
We continue to provide information timely and strive to enhance the contents of the website.

（URL） http://www.nre-rf.co.jp/english/

後で貼付

Posting the news by year and subject

Posting summaries, maps, occupancy
rates, etc, of the portfolio

Posting the latest occupancy rates

Disclaimer
This semiannual report includes translations of certain Japanese documents originally filed under the Financial Instruments andExchange Act of Japan. This report was prepared in English solely for the convenience of and reference by readers outside Japan andshould not be considered as a disclosure statement. The original Japanese documents always govern the meaning and interpretation.
In general, accounting principles and practices used by real estate investment corporations in Japan (“J-REITs”) in preparing
its financial statements conform with accounting principles generally accepted in Japan (“Japanese GAAP”). However, they may differ
from generally accepted accounting principles applied in certain other countries. Potential investors should consult their own
professional advisors for an understanding of the differences between Japanese GAAP and generally accepted accounting principles in
the United States (“U.S. GAAP”) or other jurisdictions and how those differences might affect the financial information contained
herein.
This document has been prepared for the purpose of provision of information only, and should not be construed as an offer,solicitation or commercial conduct of any nature associated with any specific products. Investors wishing to purchase the investment
units of Nomura Real Estate Residential Fund, Inc. should contact their own securities brokers or dealers. A fee may be charged byyour financial instruments business operator in relation to the sale or purchase of investment units.
Although the information contained in this document is intended to be complete and thorough, there is no assurance of precision andsafety of the same. Please note that the contents of this document is subject to change or cancellation without prior notice.
It is prohibited to make duplication, reproduction, distribution or use of any part or whole of the information contained in this document
without express prior written consent.

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